18 days ago
CNBC Sep 3, 2026

Carney claps back at Lutnick, says Canada will resume trade talks ‘when the Americans are ready’

Canadian Prime Minister Mark Carney responded sharply to criticism from U.S. Commerce Secretary Howard Lutnick, who accused Canada of sabotaging trade negotiations with the United States for political reasons. Speaking at a news conference in Thunder Bay, Ontario, Carney dismissed Lutnick’s claims, emphasizing Canada’s commitment to protect its interests and insisting that the U.S. officials were not experts on Canadian politics. He maintained that a mutually beneficial trade deal remains achievable and stated Canada is prepared to resume talks once the Americans are ready.

The trade discussions collapsed last month, missing the deadline set by President Donald Trump for avoiding new tariffs on $20 billion in Canadian imports. In retaliation, Canada planned to impose equivalent tariffs on U.S. goods, escalating tensions. Lutnick alleged on CNBC that Canada’s refusal to finalize the deal was a political maneuver linked to upcoming Canadian by-elections, adding that such resistance would likely diminish after mid-October. Despite these assertions, Carney refuted the notion that Canadian politics was driving the impasse.

Carney also criticized the U.S. negotiating stance, accusing American officials of shifting red lines and adopting a rigid, take-it-or-leave-it approach. He highlighted disputes over issues like French-language requirements and tariff relief on medium- and heavy-duty trucks, pointing out inconsistencies in U.S. positions as talks unraveled. Carney welcomed recent U.S. softening on cultural concerns but insisted that the previous rigidity hindered progress.

Meanwhile, President Trump took a dismissive tone toward Carney’s comments, warning in a Truth Social post that Canadian politicians branding him an adversary would face political backlash if Canada’s economy faltered. With tariffs set to take effect and negotiations stalled, the future of U.S.-Canada trade relations remains uncertain as both sides prepare for potential economic consequences.

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