U.S. Commerce Secretary: Trump will compromise with Canada and Mexico on tariffs, or announce tariff reductions tomorrow

U.S. Commerce Secretary Mattis Lutnick said Tuesday that the Trump administration could announce a path to tariff relief for Mexican and Canadian goods as early as tomorrow. "Mexican and Canadian officials have been on the phone with me all day today trying to show that they will do better, and the president is listening, so I think he will make some deal with them, it won't be a suspension of tariffs or anything like that, but I think Trump will compromise with them on some aspects, and we will probably announce it tomorrow," Lutnick said in an interview with Fox. Lutnick said the tariffs would probably be set "somewhere in the middle" and that Trump would make some concessions to Canada and Mexico, but would not give in completely. Lutnick dismissed the idea that the tariffs would be completely rescinded, pointing to the United States-Mexico-Canada trade agreement negotiated during Trump's first term as president. "If you follow those rules, then the president will consider giving you some relief," he said. "If you don't follow those rules, then you have to pay the tariffs." This is the first public signal that Trump may waver on the issue since the tariffs were implemented. What puzzles the market is that Trump had previously said that Canada's retaliatory tariffs on the United States would immediately trigger the United States to "increase reciprocal tariffs of the same amount."