Monday, March 3, 2025

Is a last-minute deal on US tariffs still possible?

United States Commerce Secretary Howard Lutnick said Sunday that the U.S. will impose tariffs on Mexican and Canadian imports starting Tuesday, but President Claudia Sheinbaum indicated on Monday morning that there was still a possibility Mexico could avoid the duties.

Lutnick told the Fox News program “Sunday Morning Futures” that both Mexico and Canada “have done a reasonable job on the border,” highlighting that “we’ve had the lowest crossings ever [of migrants] under Donald Trump because of his ability to negotiate with Canada and Mexico.”

“But the fentanyl continues to come into this country and continues to murder our people. The ingredients are made in China, they’re sent to Mexico and Canada and then they come and attack our country and that’s got to end,” he added.

“… There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’re going to leave that for the president and his team to negotiate,” Lutnick said, suggesting that the duties could be imposed at a different level than the proposed 25%.

“… He’s going to think about it, he’s going to put them into place on Tuesday,” said the commerce secretary, who described the situation as “fluid.”

Trump himself said last Thursday that “drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels” and consequently “the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled.”

Sheinbaum said last November that Mexico would retaliate with its own reciprocal tariffs on U.S. goods if duties were imposed on Mexican exports, while Canada has made it clear it would hit back at its southern neighbor.

On Sunday, Lutnick questioned the wisdom of Mexico and Canada retaliating against the United States with their own tariffs.

Trump and Commerce Secretary Howard Lutnick
“This is not a battle we’re ever going to lose,” Trump’s Commerce Secretary Howard Lutnick said on Sunday. (X)

“If they think they’re going to retaliate, remember they have so much more that they sell to us than we sell to them. It’s not even close. … This is not a battle we’re ever going to lose,” he said.

“The president knows it. He does have the cards and he is going to protect Americans,” Lutnick said.

Mexican officials including Economy Minister Marcelo Ebrard have engaged in negotiations with U.S. officials as they seek to extend a one-month suspension of the proposed tariffs.

Sheinbaum reached a deal with Trump in early February that postponed the tariffs until March 4. As part of the agreement, Mexico deployed 10,000 National Guard troops to its northern border.

Ebrard has said that the United States would be shooting itself in the foot if it imposes a 25% tariff on Mexican exports, asserting that 400,000 U.S. jobs would be lost and prices would rise for U.S. consumers.

The imposition of U.S. tariffs on Mexican and Canadian imports would violate the terms of the USMCA, the North American free trade pact that superseded NAFTA in 2020.

‘Everything is possible’ 

At her morning press conference on Monday, Sheinbaum said that Mexican officials had “very good” meetings with U.S. officials last week.

“We’re going to see what happens [with regard to tariffs],” she told reporters before laughing and smiling broadly.

“In this, we have to have mettle, calmness and patience,” Sheinbaum said.

“And we have plan A, plan B, plan C, plan D,” she said, indicating that her government is prepared for any eventuality.

Asked whether she could speak to Trump about tariffs before they are scheduled to take effect at midnight Tuesday, Sheinbaum said that “everything is possible.”

“Calmness and patience,” she reiterated.

“… It’s a decision that depends on the United States government. This is very important. On our side, we’ve been in communication [with the Trump administration], we’ve reached agreements and carried out the necessary coordination,” Sheinbaum said four days after her government sent 29 drug cartel figures to the United States.

“But it’s a decision that depends on the United States government, the United States president,” she said.

Mexico News Daily 

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