Last night's (July 5) episode of the ITV1 soap saw Tracy begin working on the switch at Lloyd's new cab firm Fare Ladies, hoping to support Streetcars boss Steve McDonald by sabotaging the rival business.
Tracy's scheming has already caused chaos for the new company as she has sent cabs in the wrong direction and tipped Steve off over lucrative jobs.
Speaking on This Morning today (July 6), Charles conceded that Lloyd should know better than to be fooled by Tracy (Kate Ford).
© Rex Features / Steve Meddle
Pictured: Craig Charles on This Morning today.
Charles laughed: "Why did Lloyd employ her? Is he stupid or what? But he's actually convinced that she wants to get back at Steve too… they're playing a little game with him. She just starts really sabotaging his business."
Asked whether things will get better for feuding friends Lloyd and Steve, the actor replied: "They're going to get quite bad for a while I imagine, but let's hope they make up because I love working with him."
Charles explained that starring alongside Simon Gregson, who plays Steve, is one of his favourite things about working at Coronation Street.
© ITV
© ITV
He said: "We have a ball filming it, especially with Simon Gregson. He's a great actor to work with. He's just sent me a text saying, 'I want abuse', but I'm not going to abuse him! He's actually really, really cool to work with."
Charles also teased that he is excited over a mystery future development for Lloyd.
He promised: "Just to talk about Lloyd one more second, in a few weeks' time, there's going to be something really iconic for Coronation Street happening to Lloyd. So I'll leave that as a little teaser!"
Coronation Street continues tonight (July 6) at 7.30pm and 8.30pm on ITV1.
