Lutnick’s demands derail US-Canada trade talks
The negotiations collapsed after the US commerce secretary opposed lower auto tariffs and narrower relief for Canadian aluminum.
US-Canada trade talks collapsed after Commerce Secretary Howard Lutnick intervened over proposed tariff relief, The Hill reported.
The talks had appeared close to an outline agreement before the original deadline. President Donald Trump said a deal had been reached and paused 50% tariffs on some Canadian goods while officials finalized the paperwork.
Lutnick opposed Canada’s proposal for a lower auto tariff and wanted only a limited volume of aluminum to receive reduced rates. Canadian officials and some business leaders blamed him for changing the terms late in the negotiations.
The talks fell apart on Friday, hours before tariffs were due to take effect on goods including wine, hockey sticks, and cement. Canada said it would match the tariffs dollar for dollar on about $20 billion of US goods and was expected to announce additional measures.