Reporter reveals 'most important part' of Trump’s tariffs 'exercise'

Tuesday, the 25 percent tariffs imposed on Canada and Mexico went into effect. However, Commerce Secretary Howard Lutnick on Wednesday hinted there is likely to be exceptions. As reported in the Wall Street Journal, a compromise may be looming.

"My thinking is it's going to be somewhere in the middle," Lutnick said on Bloomberg TV. "So not 100 percent of all products and not none."

As noted by AP however, Canada has been firm in its position on tariffs.

READ MORE: 'Massive personnel cuts': MAGA threatens to topple Social Security

“We’re not interested in meeting in the middle and having some reduced tariff," Canadian Finance Minister Dominic LeBlanc told the Canadian Broadcasting Corporation. "Canada wants the tariffs removed."

Both Mexico and Canada have already quickly taken retaliatory measures that could change Trump's assessment on tariffs come April 2.,

"The ability to grant exceptions gives Trump massive personal and political leverage over business," Atlantic reporter Jonathan Chait wrote Wednesday. "It's the most important part of the exercise."

READ MORE: Ex-Treasury official warns Trump’s tariffs will make consumer confidence even worse