Trump's Tariff U-Turn: Lutnick Hints at Canadian Deal, Boosting Crypto

Polymarket traders are betting on Canadian tariff cuts following hints of negotiations from Commerce Secretary Howard Lutnick. Odds on a Polymarket contract suggest a 70% chance that the trade war between Canada and the U.S. will be over by May, as Lutnick told Fox Business that U.S. President Donald Trump was open to negotiation.

On Tuesday morning, Canada and Mexico faced the implementation of 25% tariffs on all products entering the U.S., with President Trump citing their failure to curb fentanyl trafficking and illegal immigration as a national security threat. However, later in the day, Lutnick appeared to offer a potential avenue for negotiation, with odds rising 20% in a few hours on Polymarket.

I think [Trump is] going to work something out with them," Lutnick said. "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 comments also appeared to calm crypto markets on 'Turnaround Tuesday' with bitcoin (BTC) up 1.5% and trading comfortably above $87,000. The CoinDesk 20 (CD20), a measure of the performance of the world's largest digital assets, is up 2% on the news.