The Globe and Mail reports in its Thursday edition that Commerce Department nominee Howard Lutnick on Wednesday said President Donald Trump's administration may ease the proposed 25-per-cent tariffs on Canada and Mexico. The Globe's Nathan VanderKlippe and Steven Chase write that the tariff threat prompted Canada's Foreign Minister Melanie Joly to visit Secretary of State Marco Rubio in Washington. Bank of Canada Governor Tiff Macklem warned on Wednesday that "a long-lasting and broad-based trade conflict would badly hurt economic activity in Canada." The 25-per-cent Feb. 1 threat is "not a tariff, per se," Mr. Lutnick said, describing it instead as a lever designed to prompt action from Canada and Mexico on issues related to fentanyl and illegal migration. Mr. Lutnick's remarks were the first to suggest Washington has taken note of Ottawa's vows to do more on the border, including by spending an extra $1.3-billion over six years on drones, canine units and chemical detection units. A source said Prime Minister Justin Trudeau spoke at length with Mr. Lutnick who said the Feb. 1 deadline was really about border measures. After meeting with Mr. Rubio, Ms. Joly could not say whether Canada will be spared tariffs Saturday.