Nominee Proposes Tariff Exemption For Cooperative Neighbors

Howard Lutnick, the U.S. Commerce Secretary nominee, informed a Senate hearing that Canada and Mexico can evade a proposed 25% tariff by helping curb fentanyl trafficking and illegal immigration. The tariff isn't part of a broader trade assessment, with action from both nations expected promptly.

During a U.S. Senate confirmation hearing, Commerce Secretary nominee Howard Lutnick announced that Canada and Mexico could sidestep a threatened 25% U.S. import tariff.

Lutnick explained that this exemption was contingent upon both nations taking decisive action to prevent fentanyl trafficking and illegal immigration into the U.S.

This tariff discussion is separate from an ongoing trade review by various U.S. departments, including Treasury, aiming to reassess trading terms by April 1.

(With inputs from agencies.)