U.S. Commerce Secretary Howard Lutnick, a key figure in President Donald Trump’s administration, is reportedly dissatisfied with the current trade deal being negotiated with Canada and is advocating for modifications as the crucial trade talks near their conclusion in Washington, according to sources familiar with the private discussions. Lutnick, a longstanding acquaintance of the president, is believed to be pushing for a more favorable agreement than the one proposed earlier in the week.
The sources reveal that Lutnick has raised concerns about potential reductions in sectoral tariffs, specifically proposing a decrease in the tariff on Canadian-made cars from 25% to 15%. He argues that lowering these tariffs could hinder efforts to promote domestic manufacturing in the United States.
While the sources, briefed on the talks as of Thursday night, have chosen to remain anonymous due to lack of authorization, they do not suggest that Lutnick’s involvement poses a threat to the deal. However, his discontent behind the scenes contrasts with the positive outlook conveyed by President Trump, Prime Minister Mark Carney, and the trade negotiators from both nations in recent public statements.
In response to inquiries, the U.S. Department of Commerce did not deny Lutnick’s dissatisfaction with the terms. A late email on Friday emphasized that Secretary Lutnick, along with Trade Representative Jamieson Greer, has been actively engaged in negotiations with their Canadian counterparts to secure the best possible deal for the United States.
As the deadline looms for President Trump’s impending suspension of new tariffs on Canadian goods, both countries are racing to finalize a trade agreement before the expiry date. The details of the deal have not been disclosed publicly, but it is said to involve reducing sectoral tariffs that have been impacting Canadian industries severely.
Lutnick, known for advocating tariffs to protect American businesses and promote local production, plays a significant role as commerce secretary in shaping the administration’s trade policies. His close collaboration with Trade Representative Greer in negotiating with Canada underscores his influence within the administration on trade matters.
Lutnick’s discontent with the trade agreement and his alignment with Trump’s tariff-centric economic strategy highlight the challenges of reaching a consensus between the two nations. Despite the hurdles, negotiations continue as both sides strive to reach a mutually beneficial trade deal.