US Commerce Secretary Lutnick: We expect rates to come down if we balance the budget
In an interview with Bloomberg TV on Wednesday, US Commerce Secretary Howard Lutnick said that they will make an announcement on Canada and Mexico tariffs later in the day, adding that they will be "in the middle somewhere."
Key takeaways
"If Canada can stop fentanyl, US President Donald Trump is open-minded."
"Trump is thinking about what sectors he can maybe consider giving Canada relief."
"Trump will make the decision. It will be 25% but maybe some categories will be left out."
"Not seeing companies put plans on hold because of tariffs."
"We have to do our work before we announce reciprocal tariff plan on April 2."
"Some tariffs will come on right away, others will come in due course."
"We expect interest rates to come down if we balance the budget."
Market reaction
The US Dollar (USD) stays under selling pressure following these comments. At the time of press, the USD Index was down 0.6% on the day at 104.90.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
