Commerce Secretary Howard Lutnick suggested that President Trump might be open to negotiating a compromise with Canada and Mexico regarding tariffs, particularly under the United States-Mexico-Canada Agreement (USMCA).

While Canada and Mexico had retaliated with tariffs in response to the US measures, Trump defended his stance, arguing that the tariffs were a response to the failure of both countries to address illegal immigration and drug trafficking, particularly the fentanyl crisis.

Lutnick hinted that Trump might find a middle ground with Canada and Mexico, potentially rolling back some tariffs if they take further action to curb fentanyl deaths. He emphasized that the focus would be on addressing drug trafficking, stating that the deaths from fentanyl have to stop. Additionally, Lutnick noted that the president has been clear with both nations about their responsibilities in border security and combating illegal drugs.

The tariffs on China, meanwhile, have been increased, with a 10% tariff on imports from China, marking a doubling of the previous rate. The tariffs on Canadian and Mexican imports have also risen, though Canadian oil imports were given a 10% tariff carve-out. Despite the tension, Lutnick indicated that both Canada and Mexico had been in contact with the administration and that a compromise might be reached soon.