Polymarket Traders Bet on Tariff Rollback as Lutnick Hints at Middle Ground
Commerce Secretary Howard Lutnick suggested on Fox Business that President Donald Trump is open to negotiating U.S. tariffs on Canadian imports, but a full repeal is not yet on the table.
Following his remarks, Polymarket traders quickly adjusted their bets, with odds of the trade dispute being resolved by May surging to 70%, up 20% in just a few hours.
The 25% tariffs on Canadian and Mexican imports officially took effect Tuesday morning, with the Trump administration citing national security concerns over fentanyl and immigration. However, by the afternoon, Lutnick signaled that some adjustments could be made.
“Trump’s not hitting pause, but he’s willing to negotiate,” Lutnick said. “It’s not about stopping the tariffs—it’s about working out a deal where both sides can meet in the middle.”
His comments appeared to ease market tensions, helping drive a rebound in risk assets. Bitcoin (BTC) climbed 1.5% to trade above $87,000, while the CoinDesk 20 (CD20), an index tracking major cryptocurrencies, rose 2%.
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