Donald Trump will determine exact rate of trade tariffs on Canada, Mexico on Tuesday: Howard Lutnick

US President Donald Trump will determine the exact rate of trade tariffs on Canada and Mexico on Tuesday, commerce secretary Howard Lutnick said on Sunday.

"That is a fluid situation," Lutnick told the Fox News program "Sunday Morning Futures."

"There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we're going to leave that for the president and his team to negotiate."

The two countries have "done a reasonable job" securing their borders with the United States, though the deadly drug fentanyl continues to flow into the country, Lutnick said.

Last week, Trump had mentioned a possible April 2 deadline in connection with tariffs on Canada and Mexico, but later he reaffirmed the Tuesday deadline and said he would add another 10% tariff on Chinese goods on Tuesday, effectively doubling 10% duties imposed on February 4.

The commerce secretary further said Trump is expected to raise tariffs on China on Tuesday unless the country ends fentanyl trafficking into the US.

DOGE cuts

Lutnick also said that government spending could be separated from gross domestic product reports in response to questions about whether the spending cuts pushed by Elon Musk's Department of Government Efficiency could possibly cause an economic downturn.

“You know, that governments historically have messed with GDP,” Lutnick said on Fox News Channel's “Sunday Morning Futures.” “They count government spending as part of GDP. So I’m going to separate those two and make it transparent.”

Doing so could potentially complicate or distort a fundamental measure of the U.S. economy's health. Government spending is traditionally included in the GDP because changes in taxes, spending, deficits and regulations by the government can impact the path of overall growth. GDP reports already include extensive details on government spending, offering a level of transparency for economists.

Musk's efforts to downsize federal agencies could result in the layoffs of tens of thousands of federal workers, whose lost income could potentially reduce their spending, affecting businesses and the economy at large.

The commerce secretary's remarks echoed Musk’s arguments made Friday on X that government spending doesn’t create value for the economy.