Lutnick hints at tariff relief for Canada and Mexico goods covered by existing trade deal

The potential tariff reductions could positively impact U.S. automakers by reducing costs associated with complying with high tariffs on parts and vehicles manufactured in Canada and Mexico. This could lead to increased profits and production output for these companies, especially if they are able to invest in domestic production. As a result, stocks in the automotive industry, notably Ford, GM, and Stellantis, may see upward movement in their share prices.

If tariffs on Canadian oil and gas imports are lifted, this could lead to lower energy costs for U.S. consumers and manufacturers. A reduction in energy prices may benefit broader market segments, potentially leading to positive momentum in energy-dependent stocks. However, this would have a moderate impact as the announcement hinges on conditional compliance with the USMCA.