US President Donald Trump may soon find a middle ground on tariffs with Canada and Mexico. US Commerce Secretary Howard Lutnick shared this update on Tuesday, saying an announcement could come as early as Wednesday.

Trump’s decision to impose a 25% tariff on imports from Canada and Mexico took effect on Tuesday. At the same time, he also doubled tariffs on Chinese goods to 20%. These moves have sparked trade tensions, which could slow economic growth and increase prices for Americans.

Canadian Prime Minister Justin Trudeau criticized the tariffs, calling them a “very dumb thing to do.” He also confirmed that Canada would respond immediately with its own trade measures.

Lutnick mentioned that both Canadian and Mexican officials had been in discussions with him all day, trying to negotiate a better deal. He said Trump is open to finding a solution but will not pause the tariffs entirely. Instead, the president is likely to meet both countries halfway in a compromise that could be announced soon.