Polymarket Traders See Tariff Relief Ahead as Lutnick Hints at Negotiations
U.S. Commerce Secretary Howard Lutnick indicated on Fox Business that President Donald Trump is open to revising tariffs on Canadian imports, though a full repeal remains off the table for now.
Following his comments, Polymarket traders adjusted their outlook, with the probability of the trade standoff ending by May climbing to 70%, a sharp increase from earlier in the day.
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, by the afternoon, Lutnick hinted at a potential compromise.
“President Trump isn’t talking about a pause, but he’s looking at ways to meet them halfway,” Lutnick said. “If Canada makes some moves, we’ll make some adjustments too—expect something on this soon.”
His remarks also fueled a rally in risk assets, with Bitcoin (BTC) rebounding 1.5% to trade above $87,000, while the CoinDesk 20 index (CD20) rose 2%, signaling renewed investor optimism.
