Howard Lutnick has indicated that the Canada United States Mexico Agreement could face major revisions ahead of its renewal, reflecting growing dissatisfaction within the US administration.
Speaking at the Semafor World Economy summit in Washington, Lutnick said Donald Trump views the current agreement as unfavourable and in need of significant restructuring. He pointed to concerns over the impact of the deal on the American manufacturing base, particularly the auto industry.
Lutnick criticised the relocation of production facilities from US states such as Ohio and Michigan to Mexico, arguing that such shifts undermine domestic workers and weaken industrial policy. He said the administration intends to correct what it sees as long-standing imbalances.
While acknowledging that the agreement contains beneficial elements, he stressed that large portions of it require reconsideration to better serve US economic interests. He also highlighted the importance of Canadian energy resources and certain Mexican sectors within the broader trade framework.
The commerce secretary further criticised Canada’s recent trade engagement with China, questioning the economic logic behind agreements involving electric vehicle imports and agricultural exports. He suggested that such moves could complicate North American trade dynamics.
A spokesperson later clarified that Lutnick’s remarks were aimed at addressing what the US sees as an uneven trade relationship with Canada, emphasising concerns over dependency on the American market.
The comments signal potential friction ahead as negotiations over the future of the trilateral trade agreement approach.
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