One of Trump's top deputies has been unsatisfied with trade deal on the table for Canada, sources say

One of Trump's top deputies has been unsatisfied with trade deal on the table for Canada, sources say

U.S. Commerce Secretary Howard Lutnick has said the White House can secure better terms, sources tell CBC News

One of U.S. President Donald Trump's most influential cabinet members has expressed dissatisfaction with the state of the trade deal on the table with Canada and is pushing for changes to be made as the high-stakes trade negotiations come down to the wire in Washington, CBC News has learned.

Four sources with knowledge of the closed-door discussions say U.S. Commerce Secretary Howard Lutnick, a central figure in the Trump administration's economic policy who has known the president for decades, has said he believed the United States could secure a better agreement than the one that's been on offer since Tuesday.

The sources say Lutnick took particular issue with potentially lowering the sectoral tariffs, known as 232 tariffs, including lowering the levy on Canada-made automobiles from 25 per cent to 15 per cent. They say Lutnick believes the reprieve would undermine efforts to encourage domestic production in the U.S.

CBC News is not identifying the sources, who had been briefed on the talks as of Thursday night, because they were not authorized to speak about the discussions.

None of the sources suggested Lutnick's involvement jeopardized the deal, but the secretary's behind-the-scenes disgruntlement with the agreement was at odds with the optimistic message that Trump, Prime Minister Mark Carney and the two governments' top trade negotiators have presented to the public in recent days.

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"We're really happy with where we ended up," U.S. Trade Representative Jamieson Greer told reporters on Wednesday. "We feel confident that we've reached an agreement that will not only continue to protect American workers, American jobs, supply chains, but really strengthen the American economy."

A fifth source close to the negotiations said Lutnick has been constructive and engaging with the negotiating team — tough, they said, but engaging.

CBC News has contacted the White House as well as the offices of the U.S. commerce secretary, the U.S. trade representative and Canada's trade minister for comment. None had responded by publication.

Canada and the United States have been pushing to finalize a trade agreement before Trump's three-day suspension on new tariffs against a range of Canadian goods expires at 12:01 a.m. ET Saturday.

Canadian and U.S. negotiators continue trade talks as midnight deadline looms

The terms of the deal have not been made public, but separate sources have said it would lower sectoral tariffs that have been crushing the Canadian aluminum, steel and automobile sectors for months. In return, Carney asked Canadian premiers to consider ending provincial bans on American alcohol.

The White House has declined to confirm specifics.

"Any reporting about details of this possible deal should be regarded as speculation until and unless officially announced by the Administration," an official wrote in a statement to CBC News on Wednesday.

Earlier that day, Trump characterized the agreement as "a good deal for everybody," while Carney said Canada was focused on "securing the best terms in each of Canada’s most important strategic sectors."

The two countries' trade representatives met again in Washington on Friday as the administration's new deadline crept closer. Canadian Trade Minister Dominic LeBlanc didn't comment on his way into the building, but said the two sides were "very close" to a deal after a three-hour meeting on Thursday.

Leblanc calls U.S. trade deal 'very close' as premiers push for details

A source with knowledge of the deal told CBC News on Thursday that the document includes a lower tariff on Canadian steel that would include a quota system, so tariffs are only lowered on a set volume of imports. The agreement reportedly includes a change to dairy licence allocation as well, which could increase the amount of American dairy available in Canadian stores.

Tariffs against other nations have been a pillar of the Trump administration's economic strategy during both of the president's terms.

Lutnick's role as trade secretary means he wields influence on the administration's agenda when it comes to trade and tariffs. He oversees U.S. Trade Representative Jamieson Greer, the man who's been at the negotiating table with LeBlanc for weeks.

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Lutnick and Greer sat down on Monday with LeBlanc and Janice Charette, Canada's chief trade negotiator, the day before Trump announced the tentative deal late Tuesday.

The U.S. commerce secretary has long shared Trump's view that levies protect American businesses and encourage homegrown manufacturing.

"We are treated horribly by the global trading environment," Lutnick said during his confirmation hearing in early 2025. "They treat us poorly. We need to be treated better. We need to be treated with respect. We can use tariffs to create reciprocity, fairness and respect."

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Lutnick and Trump, both businessmen who grew up in New York City, met decades ago when they crossed paths on the city's social circuit. Newspapers and magazines have written about the relationship in the context of its influence as Trump came to political power.

Over the course of the trade dispute with Canada, it has been Lutnick who often endorses tariffs and criticizes Canadian policy on U.S. television networks that reach millions of American households.

Last fall, Lutnick told an audience in Toronto that he wanted to use tariffs to drain auto assembly from Canada. He criticized Canada at another event in April when he described the nation's trade strategy as "the worst" he'd ever heard. A spokesperson later said Lutnick had been referring that day to the trade imbalance between the two countries, not Canada's negotiation tactics, when the secretary said "they suck."

Kate McKenna is a senior reporter with CBC’s parliamentary bureau in Ottawa, where she covers federal politics. She previously worked for CBC’s The Fifth Estate and in the Halifax, Montreal and Charlottetown newsrooms. Her investigative and breaking news coverage has won five RTDNA awards. She is the author of No Choice: The 30-Year Fight for Abortion on Prince Edward Island.

Files from Katie Simpson and Radio-Canada's Daniel Thibeault and Louis Blouin