Trump scrambling to 'work something out' with Canada and Mexico after markets melt down
U.S. President Donald Trump makes an announcement about an investment from Taiwan Semiconductor Manufacturing Company (TSMC), flanked by C.C. Wei, Chairman and CEO of TSMC and Commerce Secretary Howard Lutnick, in the Roosevelt Room at the White House in Washington, D.C., U.S., March 3, 2025. REUTERS/Leah Millis
Carl Gibson
ALTERNET
March 04, 2025
Ever sincePresident Donald Trump announced new tariffs on the United States' neighbors, financial markets have been reeling. His administration is now signaling that Trump may be willing to somewhat back off from the new duty fees soon if he can work out a deal.
NBC News reported Tuesday that Commerce Secretary Howard Lutnick is now indicating that Trump may be willing to meet the leaders of Canada and Mexico "in the middle" following two consecutive disastrous days of trading. Lutnick's announcement that Trump would "probably" consider a compromise came after Trump re-introduced 25% tariffs on Canada and Mexico after previously walking them back.
"Both the Mexicans and the Canadians are on the phone with me all day today, trying to show that they’ll do better," the commerce secretary told Fox Business. "And the president is listening because, you know, he’s very, very fair and very reasonable. So I think he’s going to work something out with them."
Trump's desire to bring Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum to the negotiating table comes on the heels of the Dow Jones Industrial Average dropping by more than 1,300 points over the past 48 hours. CNBC reported that the S&P 500 and the Nasdaq Composite also posted losses, with the former seeing its biggest one-day drop since December this week.
It initially appeared as if the U.S. was poised for a crippling trade war with Canada, as Trudeau said he intended to add a retaliatory 25% tariff to imported American goods. Trump responded that if Trudeau imposed new tariffs, he would hit Canada again with subsequent duty fees. "Shark Tank" star Kevin O'Leary told Fox News this week that the threat of a trade war spooked investors, as the higher prices that the tariffs would bring would result in consumer spending trending downward.
The threat of new tariffs could also result in Americans delaying expensive purchases, like buying new vehicles. Flavio Volpe, who is the president of the Automotive Parts Manufacturers' Association, recently said that the tariffs would not only raise prices, but also endanger jobs both in the U.S. and in Canada.
"[Manufacturers] can't go buy a crank shaft or car seats at a Walmart," Volpe told Canada's CTV News. "So, the industry, like it did in those first two incidents, will close within a week and that includes Ontario and Michigan all the way down to Kentucky, Alabama and Texas."
Ever sincePresident Donald Trump announced new tariffs on the United States' neighbors, financial markets have been reeling. His administration is now signaling that Trump may be willing to somewhat back off from the new duty fees soon if he can work out a deal.
NBC News reported Tuesday that Commerce Secretary Howard Lutnick is now indicating that Trump may be willing to meet the leaders of Canada and Mexico "in the middle" following two consecutive disastrous days of trading. Lutnick's announcement that Trump would "probably" consider a compromise came after Trump re-introduced 25% tariffs on Canada and Mexico after previously walking them back.
"Both the Mexicans and the Canadians are on the phone with me all day today, trying to show that they’ll do better," the commerce secretary told Fox Business. "And the president is listening because, you know, he’s very, very fair and very reasonable. So I think he’s going to work something out with them."
Trump's desire to bring Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum to the negotiating table comes on the heels of the Dow Jones Industrial Average dropping by more than 1,300 points over the past 48 hours. CNBC reported that the S&P 500 and the Nasdaq Composite also posted losses, with the former seeing its biggest one-day drop since December this week.
It initially appeared as if the U.S. was poised for a crippling trade war with Canada, as Trudeau said he intended to add a retaliatory 25% tariff to imported American goods. Trump responded that if Trudeau imposed new tariffs, he would hit Canada again with subsequent duty fees. "Shark Tank" star Kevin O'Leary told Fox News this week that the threat of a trade war spooked investors, as the higher prices that the tariffs would bring would result in consumer spending trending downward.
The threat of new tariffs could also result in Americans delaying expensive purchases, like buying new vehicles. Flavio Volpe, who is the president of the Automotive Parts Manufacturers' Association, recently said that the tariffs would not only raise prices, but also endanger jobs both in the U.S. and in Canada.
"[Manufacturers] can't go buy a crank shaft or car seats at a Walmart," Volpe told Canada's CTV News. "So, the industry, like it did in those first two incidents, will close within a week and that includes Ontario and Michigan all the way down to Kentucky, Alabama and Texas."
Click here to read NBC's report in full.
'He’s going to work something out': Trump reportedly already walking back tariffs
Matthew Chapman
March 4, 2025
Matthew Chapman
March 4, 2025
RAW STORY
Donald Trump (Reuters)
Not even a day into the new tariffs against Canada and Mexico, President Donald Trump is considering some form of compromise on them — but not a full repeal or another total delay, reported Bloomberg News on Tuesday.
“Both the Mexicans and the Canadians were on the phone with me all day today trying to show that they’ll do better, and the president’s listening, because you know he’s very, very fair and very reasonable,” Lutnick told Fox Business. “So I think he’s going to work something out with them — it’s not going to be a pause, none of that pause stuff, but I think he’s going to figure out: you do more and I’ll meet you in the middle some way and we’re going to probably announcing that tomorrow.”
However, Lutnick stressed that a full rollback of the tariffs was not on the table.
“If you live under those rules, then the president is considering giving you relief,” he said. “If you haven’t lived under those rules, well, then you have to pay the tariff.”
The tariffs were initially to take effect in February. Trump agreed to a 30-day pause in exchange for Canada and Mexico taking border security measures they had already committed to.
This comes as the Dow Jones Industrial Average has plummeted in response to the tariffs, which business leaders and economists broadly fear will raise prices for consumer goods and materials and slow down the economy, particularly if the targeted countries retaliate with tariffs of their own.
Lutnick, for his part, has adamantly denied tariffs can cause inflation — something that puts him at odds with the consensus of economists studying the issue, as well as business owners who are already warning they are forced to raise prices.
Donald Trump (Reuters)
Not even a day into the new tariffs against Canada and Mexico, President Donald Trump is considering some form of compromise on them — but not a full repeal or another total delay, reported Bloomberg News on Tuesday.
“Both the Mexicans and the Canadians were on the phone with me all day today trying to show that they’ll do better, and the president’s listening, because you know he’s very, very fair and very reasonable,” Lutnick told Fox Business. “So I think he’s going to work something out with them — it’s not going to be a pause, none of that pause stuff, but I think he’s going to figure out: you do more and I’ll meet you in the middle some way and we’re going to probably announcing that tomorrow.”
However, Lutnick stressed that a full rollback of the tariffs was not on the table.
“If you live under those rules, then the president is considering giving you relief,” he said. “If you haven’t lived under those rules, well, then you have to pay the tariff.”
The tariffs were initially to take effect in February. Trump agreed to a 30-day pause in exchange for Canada and Mexico taking border security measures they had already committed to.
This comes as the Dow Jones Industrial Average has plummeted in response to the tariffs, which business leaders and economists broadly fear will raise prices for consumer goods and materials and slow down the economy, particularly if the targeted countries retaliate with tariffs of their own.
Lutnick, for his part, has adamantly denied tariffs can cause inflation — something that puts him at odds with the consensus of economists studying the issue, as well as business owners who are already warning they are forced to raise prices.
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