"I think he's gonna figure out, you do more, and I'll meet you in the middle some way. And we’re probably going to be announcing that tomorrow."
"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 is listening because you know he's very very fair and very reasonable. So I think he's gonna work something out with them," Lutnick said.
"It's not gonna be a pause. None of that pause stuff. But I think he's gonna figure out, you do more, and I'll meet you in the middle some way. And we’re probably going to be announcing that tomorrow.”
Lutnick was adamant that the flow of fentanyl should also be stopped in his interview with Larry Kudlow. When Kudlow asked Lutnick to clarify if tariffs would come down or not, Lutnick said that if Mexico and Canada are able to make progress in dropping the amount of fentanyl, that Trump is “considering giving you relief.”
He said that the relief would only be coming to those countries that were under the US, Mexico, Canda or the USMCA trade agreement that Trump put together in his first term.
Lutnick added that if countries have been living under the rules of the USMCA, they may see some relief from the tariffs, but that if a country is not living under the guidelines of the USMCA, then they will pay the tariff.
He then mentioned China, and said that concerning China, the tension between the US and the country is not a "trade war" but a "drug war" because of fentanyl coming into the US. Much of the drug that is smuggled across the northern and southern borders of the US begin with production in China. "They still are giving maximum subsidies to producing the ingredients for opioids that are killing Americans."
The Commerce Secretary also emphasized that Canada needs to stop "cheating" on the USMCA agreement, with different types of taxes on goods including with dairy and tech.
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