Trump administration says Mexican trade deal possible today

Mexico and Canada trade announcement is possible today, as retailers plan prices hikes due to tariffs.

CNN-President Donald Trump could unveil trade agreements with Mexico and Canada as soon as today, according to Commerce Secretary Howard Lutnick, speaking to Fox Business. Sources indicate that Trump is in discussions with Canadian Prime Minister Justin Trudeau today, while Vice President J.D. Vance is set to visit the southern border to further assess the situation.

 Lutnick warned that these deals might not immediately affect the 25% tariffs on nearly all Mexican and Canadian goods, which went into effect yesterday. The tariffs have sparked concern among businesses that fear rising prices for consumers. “We’re hoping the tariffs are temporary,” said Senate Majority Leader Sen. John Thune (R-SD), acknowledging the challenges these tariffs bring to both sides of the border.

Some businesses are already preparing for the financial impact. Eddie Reyes, owner of Fausto’s Tires, said, “All of our wholesalers are letting us know that prices are going to go up.” Retailers across the nation are also bracing for price hikes. Target’s CEO told CNBC that fresh produce, much of which comes from Mexico, could see price increases starting this week. Best Buy’s CEO echoed those concerns, noting a reliance on electronics from both Mexico and China. Carolina Lin, owner of Carolina Shoes, shared similar sentiments: “We’re going to have to raise our prices.” Automotive businesses are also feeling the strain. Jan Griffiths, founder of Gravitas Detroit, estimated the tariff could add between $8,000 to $12,000 per vehicle.

In response, Mexico’s president has announced plans to retaliate with its own measures, with details set to be revealed Sunday. Canada has already implemented a 25% tariff on select U.S. goods, with additional tariffs planned for the future. “We will be united, and we will fight back, and we will win,” said Melanie Joly, Canada’s Minister of Foreign Affairs.

As tensions mount, some Trump supporters remain hopeful that the president will fulfill his promises to lower prices. Jenny Kline, an independent Trump voter from Pennsylvania, expressed confidence in the administration’s ability to navigate the trade negotiations: “I’m willing to give him the time because I think he’ll be able to do it.”