This about-face, less than 18 hours after the tariffs were imposed, reflects the rollercoaster pace of today’s trade negotiations. The question is, though, how does this help the businesses stuck in the middle of this?
Lutnick suggested that President Trump is willing to scale back the tariffs on Canada and Mexico. While these tariffs were introduced to address trade imbalances, they’ve already caused severe disruptions. Just a day into the tariff saga, markets have been volatile, with major stock indices dipping sharply. For businesses on both sides of the border, the possibility of tariff relief could ease the burden, but only if it happens quickly. The clock is ticking for companies caught in this economic crossfire.
Lutnick explained that officials from Canada and Mexico have been in near-constant contact with U.S. officials, urging cooperation on issues like the flow of fentanyl. Both countries seem to be willing to meet the U.S. halfway. But the very fact that these talks are still ongoing—after so much market disruption—shows just how messy this situation is. The back-and-forth, the backpedaling, and now the hint at a possible reduction all highlight how much uncertainty hangs over international trade.
For businesses, it’s a nightmare. The fast-paced negotiations and abrupt changes in trade policy leave companies in limbo. One minute tariffs are in place, the next they may be reduced, but the damage has already been done. How are businesses supposed to operate in this environment? The shifting landscape makes long-term planning nearly impossible, as companies are forced to react to rapidly changing conditions. Pricing structures, supply chains, and even workforce planning could be upended depending on how these tariffs evolve.
With markets on edge, any move to reduce tariffs could help stabilize things. But as it stands, the constant unpredictability seems to be the only thing businesses can rely on. A reduction might soothe some of the immediate volatility, but there’s still no telling what comes next. Until there’s a clear resolution, businesses will remain on edge, trying to prepare for the worst while hoping for the best.
Lutnick: "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. It's not gonna… pic.twitter.com/yav2LRrHmr
— unusual_whales (@unusual_whales) March 4, 2025
Sources:
https://www.politico.com/news/2025/03/04/lutnick-tariff-reduction-mexico-canada-00212127
https://globalnews.ca/news/11065969/donald-trump-tariffs-canada-mexico-middle-lutnick/