(NewsNation) — President Donald Trump stood firm on placing tariffs on Canada and Mexico during his joint address to Congress Tuesday night, but Commerce Secretary Howard Lutnick says the president could reduce them pending more cooperation from the two countries.
On Tuesday, Trump put 25% taxes on Mexican and Canadian imports. He doubled the 10% tariff he placed on China as well.
“There are going to be tariffs, let’s be clear,” Lutnick said on Bloomberg TV Wednesday. “But … he’ll consider giving them relief until we get to, of course, April 2.”
Trump plans to announce what he calls “reciprocal” tariffs on that date.
Later on Wednesday, Trump granted a one-month exemption on the tariffs for United States automakers after speaking with the leaders of Ford, General Motors and Stellantis.
Trump also said he told the automaker chief executives that they should move production to the U.S from Canada and Mexico, according to White House press secretary Karoline Leavitt.
Trump tariffs’ effect on economy
Trump said he imposed tariffs because of the flow of fentanyl into the United States. He also suggested that tariffs are about getting rid of U.S. trade deficits with other countries.
Although the Tuesday tariff announcement caused the stock markets to fall and worried some consumers, Trump defended them in his address.
“Tariffs are about making America rich again and making America great again,” he told lawmakers. “And it’s happening, and it will happen rather quickly. There will be a little disturbance, but we’re OK with that. It won’t be much.”
Canada and China put retaliatory measures in place. Canadian Prime Minister Justin Trudeau called Trump’s tariffs “dumb” though he spoke with the president Wednesday morning.
“Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico and nothing has convinced me that it has stopped,” Trump said Wednesday on Truth Social. “He said that it’s gotten better, but I said, ‘That’s not good enough.”’
Still, Trump said the call ended in a “somewhat” friendly manner.
Mexican officials are planning to announce their tariff response Sunday.
The Associated Press contributed to this report.