Lutnick Suggests Trump Open to Tariff Talks, Polymarket Bets on Resolution by May
Commerce Secretary Howard Lutnick hinted at potential trade negotiations between the U.S. and Canada, suggesting President Donald Trump is open to compromise but not a full rollback of tariffs—at least not yet.
Polymarket traders are increasingly optimistic, now pricing in a 70% probability that the trade dispute will be resolved by May, following Lutnick’s comments on Fox Business.
The 25% tariffs on Canadian and Mexican imports took effect Tuesday morning, with the Trump administration citing concerns over fentanyl trafficking and border security. However, later in the day, Lutnick’s remarks appeared to shift market sentiment, causing Polymarket odds of a resolution to surge 20% within hours.
“I think [Trump is] going to work something out with them,” Lutnick told Fox Business. “It’s not going to be a pause, none of that pause stuff, but I think he’s going to figure out: you do more, and I’ll meet you in the middle someway, and we’re going to probably announce that tomorrow.”
Lutnick’s statements also seemed to boost investor confidence, with crypto markets rebounding. Bitcoin (BTC) climbed 1.5%, trading above $87,000, according to CoinDesk Indices. The CoinDesk 20 (CD20), which tracks the largest digital assets, rose 2% following the news.
