U.S. Commerce Secretary Howard Lutnick Leads Renewed Canada-U.S. Trade Talks

U.S. Commerce Secretary Howard Lutnick has become the primary catalyst for restarting trade negotiations with Canada, sources told CTV News. After months of inactivity, Lutnick began outreach about ten days ago, centering discussions on Section 232 tariffs that affect steel, aluminum, lumber and autos, which fall under his jurisdiction.

The tariffs, imposed by President Donald Trump under national-security authority, range up to 50 percent on steel, aluminum and copper, 25 percent on vehicles, an additional 10 percent on softwood lumber, and 25 percent on certain furniture and cabinetry. If formal talks resume later this week, they could also involve U.S. Trade Representative Jamieson Greer and expand to issues such as the Keystone XL pipeline, diesel and broader energy exports.

Sources said Lutnick’s last-minute demands in August, which included cultural and automotive provisions, contributed to the collapse of earlier negotiations. Canadian officials described the earlier relationship with Greer as more “respectful and productive.”

The renewed outreach coincides with heightened political pressure on President Trump ahead of the U.S. midterm elections, where tariffs have become a campaign issue in several Senate races. Michigan Republican Senate candidate Mike Rogers told CBS’s “60 Minutes” that he “doesn’t like the tariffs” on Canadian goods and has raised the matter directly with Lutnick, adding he would support congressional action to override the president if necessary.

Prime Minister Mark Carney posted on X that the recent discussions have been “constructive,” noting a “good conversation” with President Trump about a mutually beneficial trade deal that would create jobs, improve affordability and respect Canada’s languages, culture and sovereignty. Trump later said the two leaders have a “concept of a very good deal with Canada,” adding that the United States has been losing money for decades and is now close to a deal that would benefit both countries.

Canadian sources remain cautious about the president’s willingness to compromise, though they believe he is serious about reaching an agreement. Earlier talks in August had produced a tentative plan for reduced steel tariffs below a quota, lower aluminum duties and the return of alcoholic beverages to store shelves. Autos remain a contentious point; the U.S. offered a 15 percent tariff reduction for cars and light trucks, while Canada seeks the same reduction for larger trucks manufactured domestically. Sources say there has been some progress on this issue in the latest round of talks, but it is expected to remain challenging.