US commerce chief says Trump to meet Canada and Mexico in the middle on tariffs

Canadian Prime Minister Justin Trudeau told Trump his tariffs on imports were a 'very dumb thing to do' and said Ottawa was striking back immediately

US President Donald Trump, accompanied by Commerce Secretary Howard Lutnick takes a question from a reporter in the Roosevelt Room of the White House on March 3, 2025 in Washington, DC. (Photo by Andrew Harnik/Getty Images)

US Commerce Secretary Howard Lutnick said President Trump will reach a middle ground with Canada and Mexico on tariffs and that an announcement to that effect was expected on Wednesday.

Mr Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%. The move has sparked trade wars that could slam economic growth and lift prices for Americans still recovering from years of high inflation.