US Commerce Secretary Howard Lutnick has launched a scathing attack on Canada ahead of tense trade negotiations, calling the US-Mexico-Canada Agreement a "bad deal" that must be reworked. Speaking at a Semafor media event in Washington, Lutnick said President Trump believes the USMCA "needs to be reconsidered and reimagined correctly" when talks resume in July. He dismissed reports that Canada is slowing down trade discussions as "the worst strategy I've ever heard. They suck."

The trade relationship has plummeted since Trump launched his trade war in January 2025. Canadian consumers have responded with a boycott costing the US more than $1bn monthly in lost goods trade. US goods exports to Canada totaled $336.5bn in 2025, down 3.8% or $13.4bn from the previous year. Trump has called Canada the "51st state" and imposed punitive tariffs on his closest ally.

The boycott has devastated specific sectors. US alcohol has virtually vanished from Ontario government stores—annual sales were C$965mn before Premier Doug Ford halted trade in March. Wine exports plunged 81% while spirits dropped 63%, turning a $254mn surplus into a $90mn deficit. Tourism has similarly cratered, with Canadian travel to the US down 25% and receipts falling $4.7bn to $17.1bn.