Lutnick says Trump tariff with Canada, Mexico likely ends with meeting in the middle, possible deal soon
Published On Mar 4, 2025, 8:44 PM
Commerce Secretary Howard Lutnick indicated that the Trump administration's recent 25% tariffs imposed on Canada and Mexico could be rolled back if both nations agree to address U.S. concerns regarding illegal immigration and the flow of drugs. Lutnick emphasized a potential compromise where the U.S. could ease tariffs in exchange for more action from Canada and Mexico, particularly related to fentanyl trafficking. This negotiation follows retaliatory tariffs by Canada and Mexico in response to the U.S. tariffs, which are part of a broader trade discussion under the USMCA framework.
Stock Forecasts
XLP
Positive
The easing of tariffs could lead to improved trade relations between the U.S., Canada, and Mexico, potentially benefiting companies engaged in cross-border trade. A positive outcome from negotiations could boost investor confidence in sectors like consumer goods and energy, especially those heavily involved with these trading partners.
SPY
Negative
Conversely, if the negotiations do not yield a favorable outcome and tensions escalate, companies reliant on imports from Canada and Mexico may suffer, which could negatively impact their stock prices and overall market sentiment.
Related News
Stock market today: Dow, S&P 500, Nasdaq futures rise after Lutnick hints at possible tariff relief
Mar 4, 2025, 7:35 PM
US stock futures rose after Commerce Secretary Howard Lutnick hinted that President Donald Trump may provide a pathway to tariff relief.
Stock futures rise after Commerce's Lutnick suggests possible compromise on Trump tariffs: Live updates
Mar 4, 2025, 6:01 PM
Late Tuesday, Commerce Secretary Howard Lutnick hinted that the U.S. might meet Canada and Mexico somewhere "in the middle" on tariffs.
Investors brace for more volatility with Trump set to address Congress
Mar 4, 2025, 4:24 PM
(Reuters) -Investors are bracing for more U.S. stock market volatility when President Donald Trump delivers an address to Congress on Tuesday evening, on the heels of his implementation of new tariffs that rattled asset prices earlier in the day. The president's remarks come at a pivotal point for markets, as the post-election wave of exuberance and excitement has given way to anxiety that Trump's policies are weighing on economic growth and contributing to inflation. "A lot of where we are headed next really does depend on what is in this speech," said Steve Sosnick, market strategist at Interactive Brokers.