WASHINGTON

US Commerce Secretary Howard Lutnick said Tuesday that President Donald Trump is "going to work something out" on Canada-Mexico tariffs.

"It's not going to be a pause...but I think he's going to figure out, 'You do more, and I'll meet you in the middle some way,' and we're going to probably be announcing that tomorrow.

“So somewhere in the middle will likely be the outcome. The president moving with the Canadians and Mexicans, but not all the way,” Lutnick told Fox Business.

His remarks came after Trump threatened Canada with additional tariffs Tuesday in response to Ottawa’s decision to impose duties on American products.

Canadian Prime Minister Justin Trudeau reacted to Trump's decision Tuesday to implement tariffs on Canada, saying that it is "a very dumb thing to do."

Lutnick said both the Mexicans and the Canadians were on the phone with him all day today, "trying to show that they'll do better."

"And the President's listening because, you know, he's very, very fair and very reasonable," he added.