Lutnick Blames Carney for Collapsed Trade Talks

Lutnick Blames Carney for Collapsed Trade Talks

The News

Commerce Secretary Howard Lutnick blamed Canadian Prime Minister Mark Carney on Thursday for the collapse of US-Canada trade talks, accusing Canada of piling on last-minute demands and saying Carney had political reasons to kill a deal that was coming together.

Lutnick said Carney "used" the negotiations for his own political purposes, according to Bloomberg and Mediaite.

The accusation lands with 50% US tariffs already in force on Canadian goods and Canadian retaliation set to hit on September 8.

Timeline

August 22

US tariffs of 50% take effect on roughly $27.6 billion of Canadian goods, about 5% of Canada's annual exports. Energy, potash, fish and certain critical minerals are excluded.

August 26

Reuters reports Carney faces a ticking clock on how long Canadians will back his hard line with President Trump.

August 27 (Wednesday, reported)

US Trade Representative Jamieson Greer says the administration will not "just sit down and take" further retaliation from Canada. Greer notes Canada is the only country besides China to retaliate against US tariffs.

August 27

Sen. Susan Collins of Maine urges the US to return to the table, citing seafood, The Hill reports.

August 27

Lutnick publicly pins the breakdown on Carney.

September 8

Canada's retaliatory tariffs of 15%, 25% and 50% on $27.6 billion of US imports are scheduled to take effect, hitting steel, dairy, appliances and electronics.

Reactions

Lutnick's version: Canada scuttled an emerging deal with late demands, and Carney had a political incentive to walk. The US side says Ottawa refused enforceable commitments on Chinese steel transshipment.

Canada's version: Washington started the trade war and a firm response was required. RealClearPolitics summed up Carney's posture as telling Trump he will never own Canada.

Canada's ambassador told Reuters any US trade deal has to leave the Canadian auto sector robust — a red line on the industry most exposed to cross-border supply chains.

Alberta Premier Danielle Smith broke with Ottawa, calling Carney's threats economic suicide in a video flagged by The Gateway Pundit. Smith warned that a 50% export tax on the 4 million barrels of oil Canada ships to the US daily would draw US counter-tariffs on fuel headed to Ontario and Quebec, cost at least 500,000 jobs across Alberta, Ontario and Quebec, and crash the Toronto Stock Exchange.

Collins wants talks restarted. The Pennsylvania Capital-Star reports the fight could bite Republicans before the midterms, with voters already focused on prices and competitive-race states exposed to the hit.

What's Next

September 8 is the pressure date: Canada's retaliation package takes effect unless Ottawa trims it or talks restart. Greer has said the US will answer further retaliation rather than absorb it, which sets up another round of escalation in early September.

Watch whether Alberta's opposition to an oil export tax limits how far Ottawa can push, and whether Canada offers anything on Chinese steel transshipment to get the US back to the table.

More

The side skirmish continued Thursday. Carney responded to Trump's executive order renaming Lake Ontario "Lake America" by pointing out what the name "Ontario" actually means, Mediaite reported.

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