US Commerce Secretary Howard Lutnick Slams Canada Ahead of USMCA Review

Commerce Secretary Howard Lutnick sharply criticized Canada’s trade strategy on Friday, calling it “the worst strategy I’ve ever heard” and declaring “they suck” as negotiators prepare to review the United States-Mexico-Canada Agreement (USMCA) later this year.

Lutnick’s remarks, delivered ahead of upcoming trade talks, underscored growing tensions between the U.S. And its northern neighbor over the future of the North American trade pact. He asserted that President Trump believes the current USMCA requires reconsideration, signaling potential pressure on Ottawa to make concessions during the review process.

The commerce secretary’s comments were characterized by multiple outlets as unusually blunt for a senior administration official, with one report quoting him as asking rhetorically, “Is this nuts?” in response to Canada’s approach to the negotiations.

USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020, governs over $1.3 trillion in annual trade between the three countries. The agreement includes a built-in review mechanism that allows the parties to assess its effectiveness and potentially extend or modify its terms, with the next major evaluation scheduled for this year.

Lutnick did not specify which aspects of Canada’s trade strategy he found objectionable, but his remarks align with broader Trump administration concerns about market access, dairy provisions, and perceived imbalances in the agreement’s implementation from the U.S. Perspective.

Canadian officials have not publicly responded to Lutnick’s specific comments as of Friday evening. However, previous statements from Ottawa have emphasized Canada’s commitment to defending its interests under USMCA while seeking a stable and predictable trade relationship with its largest trading partner.

The timing of Lutnick’s critique coincides with heightened political attention on North American trade relations, as both the U.S. And Canada navigate domestic economic pressures and prepare for the formal USMCA review process mandated under the agreement’s terms.