U.S. Commerce Secretary Howard Lutnick, a key figure in President Donald Trump’s cabinet, is reportedly dissatisfied with the current trade deal negotiations with Canada. Sources familiar with the discussions revealed that Lutnick is advocating for modifications to the agreement, believing that the United States could secure a more favorable deal than the one proposed earlier in the week.
Lutnick specifically raised concerns about potential reductions in sectoral tariffs, notably the proposal to lower the tariff on Canadian-made automobiles from 25% to 15%. He expressed apprehensions that such adjustments could hinder efforts to promote domestic production in the U.S.
While the sources did not disclose their identities due to lack of authorization, they emphasized that Lutnick’s discontent did not pose a direct threat to the trade deal. However, his reservations contrasted with the upbeat outlook conveyed by President Trump, Prime Minister Mark Carney, and the respective trade negotiators from both countries in recent public statements.
In response to inquiries, the U.S. Department of Commerce did not deny Lutnick’s dissatisfaction with the terms of the deal, affirming that he, along with Trade Representative Jamieson Greer, has been actively engaged in negotiations with their Canadian counterparts.
The two nations are striving to finalize the trade agreement before the expiration of Trump’s three-day suspension on new tariffs against various Canadian products. The exact details of the deal remain undisclosed, but sources suggest that it may include reductions in sectoral tariffs impacting Canadian industries like aluminum, steel, and automobiles.
In a bid to secure the best possible terms for Canada in strategic sectors, Carney emphasized the importance of the ongoing negotiations. The trade representatives from both countries resumed discussions as the deadline for reaching an agreement loomed closer.
Lutnick, known for his alignment with Trump’s tariff-focused economic approach, plays a pivotal role in shaping the administration’s trade policies. His close association with the President and his stance on tariffs have been evident throughout the trade dispute with Canada.