President Donald Trump could delay his new 25 percent tariffs on Canada and Mexico for all goods and services that are “compliant” with an existing trade deal between the North American countries, Commerce Secretary Howard Lutnick said Thursday morning.
“It’s not likely to be just the automakers,” Lutnick said in an interview on CNBC, referencing the tariff pause on North American autos and auto parts the White House announced Wednesday. “I think it’s likely that it will cover all USMCA compliant goods and services,” he added, referring to the U.S.-Mexico-Canada agreement the U.S. negotiated during Trump’s first term.
The update would mark a significant retreat of the tariffs that went into force on Tuesday, and clash with previous public comments made by Trump claiming the sweeping tariffs would be enforced without exclusions or exemptions.
Lutnick’s remarks come one day after the White House announced a one-month reprieve for all auto manufacturers operating in North America who abide by the rules established under the USMCA.
Lutnick said that Trump will determine the scope of tariffs exemptions Thursday. “The likely outcome will be sort of in the middle,” Lutnick said. Trump spoke on Wednesday with Canadian Prime Minister Justin Trudeau over the phone, and the conversation ended in a “‘somewhat’ friendly manner,” Trump wrote on Truth Social. The president will soon be speaking with Mexican leaders, as well, Lutnick said on CNBC.
POLITICO reported on Wednesday that the White House was already considering exemptions beyond autos, including for key agriculture products.