U.S. Commerce Secretary Voices Dissatisfaction with U.S.-Canada Trade Draft as Differences Emerge at Final Negotiation Stage

U.S. Commerce Secretary Howard Lutnick has expressed dissatisfaction with the current draft of the U.S.-Canada trade agreement and is pushing for revisions. According to sources, Lutnick strongly opposes reducing tariffs on Canadian automobiles from 25% to 15%, arguing that such a move would undermine U.S. efforts to incentivize domestic production. Internal divisions exist within the U.S. administration: while U.S. Trade Representative Jamieson Greer claims an agreement has been reached that “protects American workers,” Lutnick—a key architect of Trump’s economic policy—maintains a hardline stance. Both sides are racing to finalize a deal before new tariffs take effect early Saturday morning. The draft agreement may include provisions to lower steel and aluminum tariffs on Canada, adjust dairy quotas, and lift provincial bans in Canada on U.S. alcoholic beverages. Canadian Minister of International Trade Mary Ng stated that the two sides are “very close” to reaching an agreement.