Lutnick Emerges as Key Figure in Renewed Canada-US Trade Talks

U.S. Commerce Secretary Howard Lutnick has emerged as a key figure driving renewed trade discussions between Canada and the United States, months after negotiations collapsed over disagreements on tariffs and other trade issues.

Multiple sources in both countries told CTV News that Lutnick initiated the renewed engagement just over 10 days ago, focusing primarily on tariffs imposed under Section 232 of the U.S. Trade Expansion Act, which covers steel, aluminium, lumber and automobiles.

The tariffs, introduced by President Donald Trump on national security grounds, include duties of up to 50 per cent on steel, aluminium and copper, 25 per cent on vehicles, and 10 per cent on softwood lumber.

August Negotiations Could Resume

Lutnick was reportedly a major source of disagreement during the final days of negotiations in August, when last-minute demands on culture, trade agreements and automobiles contributed to the collapse of talks.

However, sources say more formal negotiations could resume later this week, potentially bringing back U.S. Trade Representative Jamieson Greer and expanding discussions beyond tariffs to include the Keystone XL pipeline, diesel and wider energy exports.

Automobiles remain a major sticking point. During the previous negotiations, the United States proposed reducing vehicle tariffs to 15 per cent for cars and light trucks, while Canada wanted the reduction extended to larger trucks manufactured in the country.

Sources say there has been some movement on the issue over the past 10 days, although it is expected to remain difficult.

Carney and Trump Discuss Trade Deal

The renewed engagement follows discussions between Canadian Prime Minister Mark Carney and Trump.

In a post on X on Sunday, Carney described the recent discussions as constructive, saying he had a good conversation with Trump about the future of trade between both countries.

He said the proposed agreement should create jobs, improve affordability for families and respect Canada's languages, culture and sovereignty.

Carney added that negotiating teams would continue working over the coming weeks to achieve the proposed outcome.

Trump also confirmed speaking with the Canadian leader, describing the two countries as being close to reaching what he called a very good deal.

US Midterm Elections Add Pressure

The renewed trade discussions come as Trump faces increased pressure ahead of the U.S. midterm elections scheduled for Tuesday, November 3, with tariffs and the cost of living emerging as issues in key election races.

In Michigan, Republican Senate candidate Mike Rogers has publicly criticised the tariffs on Canadian exports, saying he does not support them. He also disclosed that he had raised the issue directly with Lutnick.

Despite the renewed engagement, Canadian sources remain cautious about the possibility of an agreement, particularly over Trump's willingness to compromise on contentious trade issues.

CTV News