A key member of U.S. President Donald Trump’s cabinet has voiced concerns regarding the current trade agreement being negotiated with Canada, advocating for modifications as the crucial talks in Washington reach a critical point, according to CBC News.
Four individuals familiar with the confidential discussions have reported that U.S. Commerce Secretary Howard Lutnick, an influential figure in the Trump administration’s economic strategies and a long-time acquaintance of the president, believes the United States is capable of negotiating a more favorable deal than the one presented since Tuesday.
The sources indicate that Lutnick is particularly opposed to the idea of reducing sectoral tariffs, known as 232 tariffs, specifically suggesting a decrease in the tariff on Canadian-made vehicles from 25 percent to 15 percent. Lutnick feels that such a reduction could undermine initiatives aimed at boosting domestic manufacturing in the U.S.
CBC News has chosen not to disclose the identities of the sources, who were briefed on the negotiations as of Thursday evening, due to their lack of authorization to discuss the matter publicly.
While none of the sources indicated that Lutnick’s views posed a risk to the agreement, his private dissatisfaction seems to contrast with the optimistic statements made by Trump, Prime Minister Mark Carney, and the chief trade negotiators from both governments in recent days.
“We’re really pleased with the outcome we’ve reached,” U.S. Trade Representative Jamieson Greer stated to reporters on Wednesday. “We have confidence that we’ve secured an agreement that will not only safeguard American workers and jobs but also enhance the U.S. economy.”
A fifth source close to the negotiations noted that Lutnick has been both constructive and engaged with the negotiating team—assertive, but also collaborative.
Lutnick outside the White House in February. (Ken Cedeno/Reuters)
In a statement provided to CBC News after the article’s publication, the U.S. Department of Commerce did not refute Lutnick’s dissatisfaction with the terms. An email received late Friday indicated that the secretary has been collaborating closely with Greer, “and the team has been actively negotiating with their Canadian counterparts.”
“These unnamed sources may not grasp that President Trump, Secretary Lutnick, and his trade team are always striving to secure the best deal for the United States,” the email emphasized.
CBC News has also reached out to the White House, Greer’s office, and Canada’s trade minister for their comments.
Both Canada and the United States are aiming to finalize a trade agreement before Trump’s three-day moratorium on new tariffs on various Canadian products concludes at 12:01 a.m. ET Saturday.
With new 50 percent tariffs set to take effect just after midnight, Canadian negotiators are once again in Washington to finalize a deal. David Cochrane, host of CBC’s Power & Politics, joins CBC News Network to break down the state of trade talks as the deadline approaches.
While the specifics of the agreement have not been disclosed, various sources have indicated it would reduce sectoral tariffs that have adversely affected Canada’s aluminum, steel, and automobile industries for several months. In exchange, Carney has urged Canadian premiers to contemplate lifting provincial restrictions on U.S. alcohol.
The White House has refrained from confirming any details.
“Any information regarding the specifics of this potential agreement should be viewed as conjecture until it is officially announced by the Administration,” an official stated in a response to CBC News on Wednesday.
Earlier that same day, Trump described the agreement as “a beneficial deal for everyone,” while Carney mentioned that Canada was focused on “achieving the best conditions in each of Canada’s most critical strategic sectors.”
Trade representatives from both nations gathered again in Washington on Friday as the administration’s new deadline loomed. Canadian Trade Minister Dominic LeBlanc refrained from commenting while entering the building but noted the two parties were “very close” to finalizing a deal after a lengthy meeting on Thursday.
Canada-U.S. Trade Minister Dominic Leblanc says a final deal is ‘very close’ as premiers weigh ending U.S. alcohol bans and push for more details. Ontario’s normally outspoken premier Doug Ford remains silent.
A source familiar with the agreement informed CBC News on Thursday that the document includes a reduced tariff on Canadian steel that would implement a quota system, allowing tariffs to be lowered only on a limited volume of imports. The reported agreement also suggests alterations to dairy license allocation, potentially increasing the availability of American dairy products in Canadian stores.
Tariffs imposed on other countries have been a cornerstone of the Trump administration’s economic policies throughout both of the president’s terms.
Lutnick’s position as commerce secretary provides him with significant influence over the administration’s trade and tariff agenda. He supervises U.S. Trade Representative Jamieson Greer, who has been engaged in negotiations with LeBlanc for several weeks.
On Monday, Lutnick and Greer met with LeBlanc and Janice Charette, Canada’s chief trade negotiator, the day prior to Trump announcing the tentative agreement late Tuesday.
Lutnick has consistently shared Trump’s belief that tariffs serve to protect American enterprises and foster domestic manufacturing.
“We are treated terribly by the global trading environment,” Lutnick stated during his confirmation hearing in early 2025. “They treat us poorly. We demand to be treated better. We deserve respect. We can implement tariffs to establish reciprocity, fairness, and respect.”
Lutnick and Trump, both business figures from New York City, established their acquaintance decades ago while mingling in the city’s social scene. Media outlets have discussed their relationship in the context of its impact on Trump’s rise to political prominence.
Throughout the trade conflict with Canada, Lutnick has often advocated for tariffs and has criticized Canadian trade policies on U.S. television networks that reach millions of viewers.
Last autumn, Lutnick expressed in Toronto his intention to utilize tariffs to shift auto assembly from Canada. In another event in April, he condemned Canada, labeling the nation’s trade approach as “the worst” he had ever encountered. A spokesperson later clarified that Lutnick was referring to the trade imbalance between the two nations, rather than critiquing Canada’s negotiation strategies, when he used the phrase “they suck.”