Trade talks between the U.S. and Canada reportedly fell through following Commerce Secretary Howard Lutnick's intervention, as 50% tariffs loom on $20 billion worth of Canadian goods.

Howard Lutnick At the Fore?

According to a report by Bloomberg on Monday, citing unnamed sources familiar with the matter, Lutnick viewed the deal as generous for the Canadians, while touting U.S.-based metal producers who sought a slowdown on concessions.

The U.S. Trade Representative and the U.S. Department of Commerce did not immediately respond to MarketDash's request for comment.

The report cited an unnamed White House official who denied Lutnick's involvement in derailing the talks, instead pinning the blame on last-minute demands made by Canadian officials that were not discussed, the report said.

The USTR, as well as Lutnick's office, also received calls from U.S. metal producers, which warned against tariff relief that would eat into their profit margins, the report said. Lutnick was also directly in touch with Canadian Prime Minister Mark Carney, despite U.S. Trade Representative Jamieson Greer being the point person, the report said.

Amid the negotiations, both parties agreed that the tariff on the auto sector would come down to 15% from 25%, but Lutnick, as the report said, was focused on preserving the tariff and the U.S. touted that the tariff reduction would apply to light vehicles and not medium- or heavy-duty trucks.

Criticism of Trump's Canada Negotiations

The Trump administration has received widespread criticism following failed talks with Canada, particularly from Democratic Party leaders. Gov. Gretchen Whitmer (D-MI) said that the tariffs would result in more taxation of Michigan residents, while Michigan Democratic Party Senate Nominee Abdul El-Sayed said Trump was imposing 50% tariffs on Canada for "vanity."

Economist Peter Schiff also slammed the decision to impose 50% tariffs on Canadian goods, saying that the move would intensify the cost-of-living crisis that Americans are grappling with.

Lutnick Touts Domestic Push

Lutnick had earlier touted the tariffs as a crucial aspect of bringing automotive manufacturing jobs back into the U.S., while also outlining that the U.S. would need to train the younger members of the workforce to do manufacturing jobs. He had hailed Ford Motor Co. (F)'s domestic manufacturing push.