- US stock contracts increased after Trump’s trade secretary suggested tariff compromises with Canada and Mexico.
- Trump reprinted 25% of Canada and Mexico prices after stopping it for a month.
- The markets closed lower for a second consecutive day, the NASDAQ and the S&P 500 have experienced significant reductions.
US-term contracts resumed a strong fall, following comments from the trade secretary, Howard Lunick on Tuesday afternoon, President Donald Trump could announce pricing compromises with Canada and Mexico on Wednesday.
Trump reprinted 25% of import prices from Canada and Mexico, a plan that was interrupted for a month, and then entered into force on Tuesday morning. The prices were imposed on allegations that neighboring countries were not resolving the flow of drugs and crimes in the United States.
Lutnick’s remarks came while US markets have downgraded and closed lower for a second consecutive day. The Nasdaq composite slipped 0.4%. During the day, he briefly reached a decrease of 10% compared to his last fence top. The S&P 500 fell 1.2%, destroying all post-electoral gains since last November.
Lutnick said the councils with Canada would likely reduce some of the newly reimed rates to imports from the two neighboring countries.
“Mexicans and Canadians are on the phone with me all day today, trying to show that they will do better,” said Lodnick, adding that Trump “listens” and open to a soil solution.
Canada also quickly responded with 25% of reprisal rates. Canadian Prime Minister Doug Ford announced on Tuesday that he would cancel a $ 100 million agreement with Starlink and take off the shelves alcohol. He also threatened an additional 25% on electricity that Ontario sends to 1.5 million Americans.
Meanwhile, Mexican president Claudia Sheinbaum said the reprisal measures “will wait” because she planned to speak to Trump this week.
Although the details of the compromise remain vague, Lutnick said that it would probably not be another price break but a longer -term agreement.
Trump addresses Congress on Tuesday evening, trade policy is likely to be a key subject.
businessinsider
