Commerce Secretary Howard Lutnick accused Canadian Prime Minister Mark Carney of walking away from a trade agreement with the United States to improve his political position ahead of Canada’s upcoming elections.
Carney issued a blistering statement after negotiations collapsed over the weekend, claiming that last-minute changes proposed by the United States were “unfair” and “uneconomic.” He also said the changes raised questions about whether any agreement with the U.S. could be considered reliable.
Lutnick disputed Carney’s account while speaking to reporters Thursday, insisting that American and Canadian officials had been in constant communication before the talks fell apart.
“I met with their trade minister, Dominic LeBlanc, at least 10 times in the last month,” Lutnick said. “I spoke to Mark Carney twice in the 24 hours before this ended. Twice.”
The commerce secretary said he also exchanged text messages with Carney and had known him for years, dating back to Carney’s time at Goldman Sachs.
According to Lutnick, Canada already had the world’s best trade arrangement before the latest negotiations began and was positioned to maintain that status under the proposed agreement.
“We had a deal, we shook hands, the president announced it, right?” Lutnick said. “And everybody was positive.”
Lutnick claimed Canada then deliberately abandoned the agreement for political reasons.
“Canada made the decision for political purposes,” he said. “They wanted to walk away. This is politics only.”
Carney had also claimed during a press conference that protecting Quebec’s French language and culture factored into the dispute. Lutnick firmly denied that the issue had ever been raised during the negotiations.
“Do I care about how the Québécois speak? I mean, what could matter less to America? We don’t care!” Lutnick said.
He called Carney’s assertion “manufactured” and pointed to President Donald Trump’s Truth Social post describing the claim as a “complete lie.”
Lutnick argued that Carney was attempting to influence political contests involving the sovereignty party in Quebec and an independence resolution in Alberta. He noted that elections are scheduled for October and predicted Canadian officials would return to the negotiating table afterward.
“My guess will be, as soon as his elections are over, you’re going to see a plane full of Canadian negotiators flying down,” Lutnick said.
The commerce secretary maintained that the agreement did not collapse because of its economic terms, which he described as “sensational.”
“It was a great deal that we shook hands on,” he said.
After negotiations failed, Trump announced 50% tariffs on Canadian goods. Carney responded by saying Canada would match those tariffs on American products entering the country.
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