Trump may meet Canada and Mexico 'in the middle', says US commerce chief

Published On Mar 4, 2025, 11:29 PM

U.S. Commerce Secretary Howard Lutnick indicated that President Trump is likely to announce a deal to reduce tariffs on imports from Canada and Mexico. This development follows retaliatory import levies imposed by both countries in response to recent U.S. tariffs. Lutnick emphasized that the U.S. is expected to lower tariffs rather than pause them, signaling a willingness to negotiate. Canadian officials, however, have expressed skepticism about the plans, citing a lack of communication. Meanwhile, tensions continue with China over a separate trade war, where new tariffs have been introduced by the U.S.

Stock Forecasts

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Positive

Tariff reductions can lead to reduced costs for U.S. imports from Canada and Mexico, potentially benefiting industries reliant on these imports. As businesses anticipate better trade relations, stock prices in related sectors may rise. Companies like Ford Motor Company (F) could see positive impacts if tariffs on automotive parts are reduced. Trade stability often boosts investor confidence, which can further increase stock prices in relevant industries.

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