Trump's latest tariffs may cause a price hike of certain products in the United States for a short period, according to US Secretary of Commerce Howard Lutnick on Wednesday.

Lutnick stated that "There's going to be a short period of time where there will be some higher prices on certain products. It's not inflation. That's nonsense. It's certain products for a short period of time," in an interview with Fox News. 

He added that President Donald Trump is considering exempting some Canadian and Mexican products from tariffs for the upcoming month to help domestic manufacturers in the United States, including automakers.

Trump offers tariff exemption for relocation

United States President Donald Trump announced on March 4 an exemption from tariffs to all foreign companies that relocate their manufacturing operations to the US in an attempt to prop up local manufacturing.

"IF COMPANIES MOVE TO THE UNITED STATES, THERE ARE NO TARIFFS!!!" Trump's announcement reads on his Truth Social platform.

Trump's escalation of tariffs, particularly on imports from Canada and Mexico, has sparked concerns among major US retailers like Target and Best Buy, who pointed out that the tariffs will harm consumers as prices increase, especially for electronics, which are mostly imported.

Canada and Mexico have no way to avoid the imposition of 25% tariffs, which are set to take effect on March 4, according to a statement by Trump on March 3, where he said "They’re going to have to have a tariff."

"So what they have to do is build their car plants, frankly, and other things in the United States, in which case they no tariffs." Trump said, adding that there was "no room left" for a deal to Prevent the tariffs by tackling the flow of fentanyl into the United States.

Trump's tariffs are making the United States a "scary place to invest", according to Nobel-prize-winning economist Joseph Stiglitz, who pointed out that the US tariff war against the world could lead to the worst kind of inflation, stagflation.