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U.S. Commerce Secretary Howard Lutnick announced on Sunday that tariffs on Mexico and Canada will take effect on Tuesday, though President Donald Trump will determine whether to impose the full 25% rate. Speaking on Fox News’ Sunday Morning Futures, Lutnick called the situation “fluid,” suggesting that the administration may adjust tariff levels through negotiations.
This marks the first indication that the White House might not enforce the initially threatened 25% tariff on all Mexican imports and non-energy Canadian goods. Lutnick noted that both nations have made efforts to secure their borders with the U.S., though fentanyl trafficking remains a concern.
Last week, Trump sparked confusion by mentioning an April 2 deadline before reaffirming that tariffs would be implemented on Tuesday. Additionally, he announced a 10% increase on Chinese imports, doubling the 10% tariffs imposed on February 4.
Lutnick confirmed that unless China takes significant action to curb fentanyl trafficking into the U.S., Trump is expected to raise tariffs on Chinese goods as planned.
The administration's trade policies continue to create uncertainty in global markets, with businesses closely monitoring potential tariff adjustments.
