U.S. Commerce Secretary Howard Lutnick dismissed a question of whether U.S.-Canada free trade is dead, calling the concept “stupid” and said a large number of Canadian goods are included in U.S. tax exemptions under the current North American Free Trade Agreement.
“We have a program called (US-Canada Agreement) and almost 75% of all goods from Mexico and Canada are no longer relevant,” Lutnik said in an interview. Facing the country It airs on CBS on Sunday morning.
But Lutnick suggested in the same breath that Canadian tariffs are now staying here.
He added: “The president knows we need to open the market. Canada is not open to us. They need to open the market. They will pay tariffs unless they are willing to open the market.”
The comments from the Commerce Secretary were published for a few days, and Prime Minister Mark Carney told reporters in French that “there is no lot of evidence yet” that the United States is willing to reach a deal with Canada without some tariffs.
Prime Minister Mark Carney said in a speech at the French before Tuesday’s cabinet meeting that “we need to stabilize” Canada’s situation when asked about the potential of a tax exemption agreement with the United States.
But the Prime Minister also said on Tuesday that Canada has “almost free trade” with the United States, referring to tariff exemptions for Canadian goods that meet USMCA-compliant Canadians, known as the Canadian-Osimma Agreement (Cusma).
According to Royal Bank of Canada report Released last monthIn January 2025, approximately 79% of U.S. imports from Canada were “definitely tax-free.”
In April, that number rose to about 89%.
Lutnick told host Margaret Brennan: “Why should our country be open when it is closed?
Kusma negotiations are imminent
Lutnick also told Brennan that Trump “will definitely renegotiate (Kusma), but it’s the year today.”
He added: “For the president, it makes sense to renegotiate it. He wants to protect the work in the United States. He doesn’t want to build cars in Canada or Mexico when they can be built in Michigan or Ohio. It’s better for American workers.”
Kusma doesn’t officially renegotiate until 2026, but some Canadian business leaders and others Call on the federal government The dialogue began for economic stability.
There are still some questions about whether the negotiations will lead to another trilateral trade agreement.
Last November, Ontario Prime Minister Doug Ford promoted the Mexican Ditch and signed a bilateral agreement with the United States – Alberta Prime Minister Danielle Smith’s move agreed to be worth exploring.
The suggestion has shocked Canada-Mexico relations, but Carney and Mexican President Claudia Sheinbaum seem to be closing the gap.
According to one person Press release Published on the Prime Minister’s website.
Canada – U.S. trade negotiations continue
Carney and his negotiating team continue to reach a deal with Trump in hopes of avoiding the latest threat from the U.S. president – this is a Tariffs for all Canadian goods are 35%.
The U.S. president has raised a threat in a letter he posted on social media, which has been sent to the Prime Minister. He said the tariffs will come into effect on August 1 and the United States will increase taxes if Canada retaliates.
Lutnick said the White House would make a better deal with big powers that open economies “to ranchers, fishermen, farmers and businesses”, but if they put tariff barriers in place, it would “seem to be fair” to impose levies.
U.S. President Donald Trump threatened to crack down on 35% tariffs on all Canadian goods late Thursday. Trump’s latest threat is a letter to Prime Minister Mark Carney, whom the president posted in his social media site Truth Social.
Trump cited fentanyl “dumping” from Canada for his latest tariff threat in his letter, although data remains The least medication Compared with the United States-Mexico border, it is crossing the Canada-US border.
Trump also shot Canada’s supply management system, a long-standing stimulus, claiming that Canada has tariffs of up to 400% on U.S. dairy products.
High tariffs in Canada apply only if they meet or exceed the agreed tariff quota for U.S. dairy imports under the USMCA.
American Dairy Association Say Americans never approached exceeding their quotabut it also claims that it is because Canada’s “trade protectionist measures” restrict exports.
The free government has maintained Will not be removed Supply management.
