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Lutnick Slams Canada’s China Tilt, Eyes 2026 USMCA Talks
Commerce Chief Calls Carney’s China Push 'Political Noise' as US, Canada, Mexico Talks Loom This Summer
U.S. Commerce Secretary Howard Lutnick dismissed as “political noise” the moves in recent days by Canada’s Prime Minister Mark Carney to strengthen trade relations with China, and raised the risk of that maneuver seeping into talks over a revamped North American trade accord later this year.
“Do you think China is going to open their economy to accept exports from Canada? This is the silliest thing I’ve ever seen,” Lutnick said in an interview with Bloomberg TV on Jan. 22 while attending the World Economic Forum in Davos, Switzerland.
Carney last week reached a deal with China President Xi Jinping that opened the door to electric vehicles and auto investment from Asia’s largest economy, in return for expected cuts to Chinese tariffs on Canadian rapeseed, also known as canola. He also called China a “more predictable” trading partner than the U.S.
“We should look at it as just political noise coming out of a prime minister,” Lutnick said of Carney’s recent messaging. “I don’t think it can be real, because he took out the math of Canada’s economy and doing business with the United States of America’s $30 trillion economy. There’s no such thing as changing what they have today.”
Canada has “the second-best deal in the world” with its access to the U.S. market, Lutnick said, behind only Mexico. The commerce chief also indicated that Canada’s tilt toward China could become an issue in talks over revamping the U.S.-Mexico-Canada trade agreement known as USMCA.
If Ottawa opts to import Chinese electric vehicles and other trade-strengthening steps with Beijing, “do you think the president of the United States is going to say you should keep having the second-best deal in the world” during USMCA talks, Lutnick questioned.
He also said that USMCA renegotiation is likely to happen “towards the end of the summer and the middle of the summer” this year.
Canada’s finance minister, Francois-Philippe Champagne, told reporters in Quebec City that every Group of Seven nation is charting its own strategic path forward with China, and Canada is no different.
“We’ll continue to work hand in hand with our U.S. partner,” he said. “At the same time, I think Canadians have understood by now that diversification is key. We need to be more resilient.”
Mexico’s Aims
Mexico President Claudia Sheinbaum said separately Jan. 22 that her nation will work to maintain the USMCA trade deal despite recent disputes between Carney and President Donald Trump. Speaking at her daily press briefing, she also said she would try to talk with Carney.
RELATED: Canada, Mexico Lay Out Action Plan Before USMCA Review
Next week, Mexico’s economy minister, Marcelo Ebrard, will travel to Washington for trade talks, Sheinbaum also said, speaking in Puebla, Mexico.
