Commerce Secretary Howard Lutnick announced on Sunday that the United States will impose tariffs on Canada and Mexico starting Tuesday, though he described the situation as “fluid,” with President Donald Trump finalizing the details.
“There are going to be tariffs on Tuesday on Mexico and Canada,” Lutnick told Fox News’ Maria Bartiromo on Sunday Morning Futures. “Exactly what they are, we’re going to leave that for the president and his team to negotiate.”
Trump’s initial tariff proposal from February included a 25% duty on all imports from Mexico and most from Canada, with energy products facing a 10% tariff. While tariffs on Canada and Mexico were postponed for a month, Trump did enforce a 10% tariff on all Chinese imports. Lutnick suggested an additional 10% tariff on Chinese goods could also be imposed on Tuesday.
Economists warn that tariffs on America’s top trading partners could increase prices on goods such as footwear, electronics, groceries, and vehicles, adding pressure to consumers and businesses still grappling with inflation.
Meanwhile, Treasury Secretary Scott Bessent told CBS News’ Face the Nation that Mexico has offered to match U.S. tariffs on China, and if Canada follows suit, it could serve as a positive step toward trade negotiations. He indicated that Mexico and Canada could implement these tariffs by Tuesday, or the U.S. would proceed with its planned tariff increases.
To address inflation concerns, Bessent announced plans to appoint an “affordability czar” to identify key areas where the administration can ease financial burdens for working-class Americans. He also proposed an “affordability council” to further address economic challenges.
Bessent downplayed concerns over rising prices, arguing that tariffs did not significantly impact consumer costs during Trump’s first term. However, a 2020 report from the trade coalition Tariffs Hurt the Heartland found that U.S. businesses paid $46 billion more in tariffs than they would have without Trump’s trade policies.
“It’s a holistic approach,” Bessent said. “There will be tariffs, there will be cuts in regulation, there will be cheaper energy. I expect inflation to keep dropping over the year.”
