Howard Lutnick, the U.S. Commerce Secretary, has voiced his concerns regarding the likelihood of a trade agreement with Canada ahead of a meeting between President Donald Trump and the newly elected Canadian Prime Minister Mark Carney on Tuesday.
What Happened: On Monday, Lutnick referred to the Canadian government as a “socialist regime” and questioned the feasibility of a trade deal with the country.
During an interview with Fox Business Network's Larry Kudlow, he pointed out that the U.S. has been disproportionately supporting the Canadian economy for decades, with American companies manufacturing cars and producing films in Canada.
He called making a deal with Canada “really complex” and stated, “They’ve been basically feeding off of us for decades upon decades upon decades.”
Lutnick expressed anticipation for the upcoming meeting between the leaders of the two nations but also voiced his doubts about its potential success. “Its going to be a fascinating meeting.” The commerce secretary added, “I just don’t see how it works out so perfectly.”
Why It Matters: Lutnick’s comment comes before a high-stakes meeting between the heads of the U.S. and Canada. On Friday, Canadian PM Mark Carney told reporters that he had a ‘very constructive’ phone call with Trump and called him one of the ‘best negotiators’. Previously, Carney had asserted, “Our old relationship with the United States (…) is over.”
On Monday, when asked about the meeting with Carney, President Trump told reporters, “I’m not sure what he wants to see me about but I guess he wants to make a deal everybody does they all want to make a deal”
Notably, in April, Canada announced a temporary six-month relief from its countermeasure tariffs on U.S. goods, a move that signaled a de-escalation in North America’s trade standoff. The decision, which was in line with a more conciliatory tone recently struck by the Trump administration, was seen as a positive step towards easing trade tensions between the two countries.
However, Lutnick’s recent remarks have introduced a new level of uncertainty into the equation. As the leaders of the two nations prepare to meet, the outcome of their discussions could have significant implications for the future of U.S.-Canada trade relations.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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