Lutnick’s intervention in Canada talks draws praise, blame

U.S.-Canada trade talks collapsed after last-minute pressure from Commerce Secretary Howard Lutnick , according to people familiar with the matter, leaving U.S. President Donald Trump to impose new tariffs and Prime Minister Mark Carney vowing retaliation.

With the countries spiralling into a full-blown trade war, the spotlight is on Lutnick’s role in the last-minute talks. Lutnick viewed a framework deal as too generous to Canada and emerged as a champion for U.S. metal producers who wanted to claw back concessions, the people said, speaking anonymously to discuss the negotiations.

The Canadians blame him for moving the goalposts, some of the people said, while some business leaders credit Lutnick with derailing what they saw as a threat to U.S. metals industries Trump has vowed to protect.

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Trump last Tuesday announced a deal was in sight and delayed imposing 50 per cent tariffs on a range of Canadian goods. Battle lines, however, had formed as Lutnick and Peter Navarro, a pro-tariff trade hawk, criticized the framework from U.S. Trade Representative Jamieson Greer’s weeks of talks with Canada.

Lutnick’s 11th-hour intervention, taking him deeper into the talks, marked the latest example of how he’s functioned as a disruptive force inside Trump’s administration, often seizing on trade files where he senses the U.S. can squeeze more leverage.

A White House official disputed any notion Lutnick derailed the talks, insisting instead that they imploded after Canada made last-minute demands outside the agreed scope of discussions. The official added that while there was likely debate among U.S. officials about the magnitude of tariff relief, Lutnick and Greer are aligned and working under Trump.

While Lutnick was unhelpful and a major contributor to the breakdown of talks, his arrival wasn’t the cause, according to a Canadian official. The official said there were fundamental problems with the U.S. objectives over the final days.