US signals possible exemptions in Canada, Mexico tariffs [Video]

US Commerce Secretary Howard Lutnick said an announcement on Canada and Mexico tariffs was expected later Wednesday, signaling potential relief for specific sectors such as automobiles, a day after the steep levies took effect.

President Donald Trump’s sharp 25 percent tariffs on US imports from Canada and Mexico — with a lower rate for Canadian energy — kicked in Tuesday, sending global markets tumbling and straining ties between the neighbors.

Ottawa swiftly announced retaliatory tariffs, while Mexican President Claudia Sheinbaum plans to unveil her response at a mass rally on Sunday.

The US president has nominally cited illegal immigration and fentanyl trafficking in imposing the measures, though he frequently lambasts alleged trade imbalances when discussing the issue.

Some sectors such as automobiles are expected to be hit particularly hard by the tariffs, with parts crossing North American borders multiple times during production.

Trump is listening to “offers” from Canada and …