During an interview on “Sunday Morning Futures” with Maria Bartiromo on Fox News, Commerce Secretary Howard Lutnick disclosed that the United States is poised to implement tariffs on Canada and Mexico this coming Tuesday. Lutnick emphasized that the specifics of these tariffs are still subject to negotiation by President Donald Trump and his team, characterizing the situation as “fluid.”
Earlier proposals from Trump in February outlined a 25% duty on imports from Mexico and most from Canada, with energy products facing a 10% tariff. Additionally, a new 10% tariff on Chinese goods was also put forth. Although the tariffs on Canada and Mexico were initially postponed for a month, Trump did proceed with a new 10% across-the-board tariff on Chinese products.
Lutnick hinted that an additional 10% tariff on Chinese imports may still be on the table for implementation on Tuesday.
Economists are bracing for the repercussions of tariffs imposed on America’s primary trading partners, predicting an increase in the prices of various goods such as shoes, electronics, groceries, and vehicles. Such tariffs could potentially impact American consumers and businesses, despite some alleviation in inflation rates, continuing to experience the enduring effects of long-term inflation.
In a separate interview on “Face the Nation” with Margaret Brennan on CBS News, Treasury Secretary Scott Bessent revealed that Mexico has signaled its willingness to reciprocate tariffs on China, and should Canada follow suit, it would be considered a positive step forward. Bessent suggested that Mexico and Canada might implement these tariffs by Tuesday, or face the imposition of a tariff barrier, marking a critical turning point in the ongoing trade discussions.
Bessent disclosed plans for the Treasury Department to appoint an “affordability czar” to address the persistent inflationary pressures. He underscored the importance of identifying key areas where the current administration could make a positive impact for working-class Americans, proposing the establishment of an “affordability council” to streamline efforts.
Despite reassurances from Bessent that Americans need not fret over rising prices, citing the lack of significant impacts on goods’ prices during Trump’s first term, an analysis conducted by the free-trade coalition “Tariffs Hurt the Heartland” in January 2020 revealed that U.S. companies paid $46 billion more in tariffs than they would have without the implementation of Trump’s tariffs.
Bessent outlined a comprehensive strategy that encompasses a combination of tariffs, regulatory cuts, and reduced energy costs, expressing optimism that inflation rates would continue to decline throughout the year.
Contributions to this report were made by CNN’s Donald Judd and Betsy Klein.
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