After two straight days of plunging equity markets as the largest act of American protectionism since the 1930s took hold, Lutnick said he spent all day on the phone Tuesday with his North American counterparts discussing ways to reach at least a partial reprieve. (Watch the Commerce chief discuss it .)
It won’t be a full pause on tariffs, he stressed hours before Trump delivered an address to a joint session of Congress, but perhaps a deal where the president would “meet you in the middle.”
To recap, Trump put 25% tariffs on most imports from Mexico and Canada, and added 10% on Chinese goods on Tuesday. Canada’s leader responded with immediate retaliation and tough rhetoric. China’s response was measured to avoid escalating tensions. Mexico’s president took an even more deliberative approach, saying her response would come Sunday.
‘Little Disturbance’
After all those developments came Trump’s address on Capitol Hill last night — a speech delivered as data shows new strains on the US economy: factory activity stagnating, inflation simmering, consumer confidence ebbing, and American stocks lagging equity markets in other countries.
“Tariffs are about making America rich again and making America great again,” he said, adding that the new border taxes will raise “trillions and trillions” in revenue. “And it will happen rather quickly. There’ll be a little disturbance, but we’re OK with that. It won’t be much.”
It’s also worth noting that he asked American farmers to “bear with” him again during the adjustment period and repeated that come April 2, there will be tariffs going on “agricultural product coming into America.”
Trump reiterated his threat to impose 25% tariffs on foreign-made aluminum and steel. Those are scheduled to take effect March 12. Reciprocal tariffs are still on track for April 2, he said.
He also put a figure on his planned copper tariffs — 25%. That revelation sent copper prices surging 5%.
Despite the new tariffs on goods flowing across North America including those in carmakers’ supply chains, “we are going to have growth in the auto industry like nobody has ever seen,” Trump said. “Plants are opening up all over the place. Deals are being made — never seen. That’s a combination of the election win and tariffs. It’s a beautiful word, isn’t it?”
In response to Trump’s remarks, Democratic Senator Elissa Slotkin argued that rising grocery bills and home prices would be exacerbated by the president’s sweeping tariffs.
—Brendan Murray in London
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