U.S. Commerce Secretary Blasts Canada’s Trade Strategy as "Nuts" Ahead of CUSMA Review

U.S. Commerce Secretary Howard Lutnick calls CUSMA a "bad deal" and critiques Canada's China policy as trade negotiations loom.

By: AXL Media

Published: Apr 19, 2026, 8:17 AM EDT

Source: Information for this report was sourced from CBC News

A "Bad Deal" Under Review

The North American trade landscape faces significant turbulence as U.S. Commerce Secretary Howard Lutnick labeled the U.S.-Mexico-Canada Agreement (CUSMA) a "bad deal." During a recent summit hosted by Semafor, Lutnick indicated that President Donald Trump is considering letting the pact lapse unless it is "reimagined" to better benefit the American economy. While acknowledging some positive aspects of the current agreement, the Secretary emphasized that a total reconsideration is necessary before the formal review deadline on July 1. This stance signals a potentially aggressive posture from Washington as the three nations prepare to return to the bargaining table.

Diplomatic Friction Over China Policy

Lutnick directed specific criticism toward Prime Minister Mark Carney, mocking a recent Canadian trade mission to China. The Secretary questioned the logic of seeking economic partnerships with an export-driven economy like China's while simultaneously navigating trade tensions with the United States. "He gets on a plane and he goes to China... does he think the Chinese economy is going to buy his stuff?" Lutnick remarked, further describing Canada’s reported openness to Chinese electric vehicles as "nuts." These comments highlight a deep-seated frustration in Washington regarding Canada's efforts to diversify its trade portfolio outside of North America.

Clarification on Disparaging Remarks

During the event, Lutnick’s use of the phrase "they suck" drew immediate attention. A spokesperson for the U.S. Commerce Department later clarified to CBC News that the comment was intended to describe the "unfair trade imbalance" between the two nations rather than a personal slight against Canadian negotiators. The spokesperson stated that Lutnick was explaining how Canada "sucks off" the 30-trillion-dollar U.S. economy. Despite the clarification, Semafor editor-in-chief Ben Smith suggested the rhetoric reflects genuine irritation within the administration rather than a calculated negotiation tactic, noting a perception in D.C. that Canada holds few high-value cards.