Lutnick's analysis comes weeks after China filed a lawsuit against the U.S. with the World Trade Organization over its 10% tariff. It issued its own 10% tariff.

Trump at first imposed 25% tariffs on Canadian and Mexican exports to the U.S., then exempted the duties on Mexican- and Canadian-made vehicles being transported into the U.S. and later by week’s end delayed the tariffs on almost all items for four weeks until April 2.

Washington – President Donald Trump launched a trade war Tuesday against America’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin as the U.S. faced the threat of rekindled inflation and paralyzing uncertainty for business.