Howard Lutnick, U.S. Commerce Secretary, criticized Canada’s trade strategy ahead of North American deal talks, calling it “bad industrial policy” that harmed America. Speaking at Semafor, he dismissed Canadian efforts to slow negotiations, labeling them “the worst strategy I ever heard,” and condemned Prime Minister Mark Carney’s outreach to China as “nuts.” Lutnick highlighted Canada’s reliance on the U.S. economy, which he described as “$30 trillion,” and accused Ottawa of exploiting American markets for decades.**

Canada has pushed back, with Foreign Minister Dominic LeBlanc urging a “comprehensive agreement fast” and noting recent talks with Lutnick were “productive.” However, tensions persist after Trump froze negotiations in October over an Ontario-funded ad criticizing tariffs. Lutnick reiterated that the U.S.-Mexico-Canada Agreement (USMCA), which he called “a bad deal,” requires renegotiation, though he acknowledged some “fundamental” benefits.**

The dispute reflects broader friction under Trump’s “America First” agenda, particularly after Carney’s Davos speech urging global cooperation against U.S. economic dominance. Canadian officials, including LeBlanc, emphasized Ottawa’s desire to resolve steel tariffs and other issues swiftly. Meanwhile, Lutnick’s remarks underscore the administration’s stance: Canada’s trade policies, including its recent electric vehicle deal with China, are seen as undermining U.S. interests.**

Businesses reliant on cross-border supply chains face uncertainty as talks restart. Analysts warn that a fractured USMCA could disrupt North American markets, impacting sectors like automotive and agriculture. With the July review deadline looming, both sides must navigate political and economic pressures to avoid a trade war.