Commerce Secretary Howard Lutnick announced on Sunday that the United States intends to impose tariffs on imports from Canada and Mexico starting Tuesday. Despite the decision being made, the situation remains “fluid” as President Donald Trump is set to finalize the tariff levels, according to Lutnick.
In an interview on Fox News’ ‘Sunday Morning Futures,’ Howard Lutnick stated, “There are going to be tariffs on Tuesday on Mexico and Canada.” He emphasized that the specifics of these tariffs are still under negotiation by the president and his team. Earlier proposals included a 25% duty on most imports from Mexico and Canada, excluding energy products, which would face a 10% tariff. Moreover, a new 10% tariff on Chinese goods had already been enacted, with further increases possible on these imports.
Economists caution that tariffs on the United States’ primary trading partners could drive up prices for various goods such as shoes, electronics, groceries, and vehicles. Despite improving inflation rates, American consumers and businesses might continue to feel inflation’s impact. Treasury Secretary Scott Bessent shared on CBS News’ ‘Face the Nation’ that Mexico is prepared to reciprocate with tariffs on Chinese imports, a move that could be mirrored by Canada. Bessent suggested that if these tariffs are aligned by Tuesday, or if negotiations fall through, a ‘tariff wall’ might be established, leading to further developments.
Bessent also introduced the prospect of appointing an ‘affordability czar’ to tackle ongoing inflation concerns, responsible for identifying key areas where the administration could assist working-class Americans. He mentioned the potential establishment of an ‘affordability council.’ Despite his reassurances that consumer prices wouldn’t surge as they did during Trump’s first term, analyses show that tariffs led to $46 billion in extra costs for U.S. companies.
Bessent asserted a comprehensive strategy that combines tariffs, regulatory reductions, and cheaper energy to manage inflation. He expressed optimism about the continued decline in inflation over the year but recognized the potential challenges for consumers.
The looming tariffs on Canada and Mexico, combined with existing measures against China, underscore a complex trade environment. While the U.S. administration navigates these economic challenges, American consumers and businesses await the tangible effects of these policies on prices. The evolving situation calls for careful observation as further developments unfold.
