Lutnick: Trump to Set Levels of Mexico, Canada Tariffs

The U.S. will impose tariffs on Canada and Mexico on Tuesday, but the situation is "fluid" and President Donald Trump will determine the levels, said Commerce Secretary Howard Lutnick.

"There are going to be tariffs on Tuesday on Mexico and Canada," Lutnick told Fox News' Maria Bartiromo on "Sunday Morning Futures." "Exactly what they are, we're going to leave that for the president and his team to negotiate."

Lutnick said that although both Canada and Mexico have a done a reasonable job on the border in reducing the number of crossings, they haven't moved on taking action to stop the flow of fentanyl into the United States, which kills many Americans.

The commerce secretary said that there will definitely be tariffs against China, because they have not stopped making the ingredients for fetanyl.

Instead, he said, they are currently giving maximum subsidy to those who are making those ingredients.

"If China thinks they are going to retaliate, remember they have so much more that they sell to us than we sell to them. It is not even close,"Lutnick said.

"This is not a battle that we are ever going to lose. The president knows it. He does have the cards, and he is gong to protect America."

Commenting on expectations by some experts that these tariff wars will harm the economy, Lutnick insisted that the opposite will be true.

"This is going to be the best economy everyone has ever since, and to be against it is foolish," he said, claiming that when "we balance the budget of the United States of America, interest rates are going to come smashing down, when [Trump] produces the energy that is necessary, energy prices are going to come crashing down, inflation is going to come smashing down."

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