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.