Lutnick: Trump may roll back Mexico-Canada tariffs tomorrow

• Says he thinks Trump will meet Mexico and Canada in the middle on tariffs
• We’re going to probably be announcing that tomorrow
• If USMCA rules are followed, Trump is considering relief
• We’ll see tariff changes on April 2 with Mexico and Canada
• Canadians like to cheat

Does he think that some kind of 12.5% tariff will de-escalate? That’s hard to believe. It’s also odd that he’s talking about tariff changes with Mexico and Canada on April 2.

I guess we will have to wait and see but this sounds like the start of a climb-down.

• Trump is to move with Canada and Mexico but not all the way
• Trump may roll back Mexico-Canada tariffs tomorrow
• It’s not going to be a pause

There is CAD buying on this and broader US dollar selling.

Here’s the direct quote:

“Both the Mexicans and the Canadians were on the phone with me all day today trying to show that they’ll do better, and the president’s listening, because you know he’s very, very fair and very reasonable,” Lutnick said. “So I think he’s going to work something out with them — it’s not going to be a pause, none of that pause stuff, but I think he’s going to figure out: you do more and I’ll meet you in the middle some way and we’re going to probably announcing that tomorrow.”

More:

“If you live under those rules, then the president is considering giving you relief,” Lutnick said. “If you haven’t lived under those rules, well, then you have to pay the tariff.”

This article was written by Adam Button at www.forexlive.com.