NextFin news, On Wednesday, Oct. 8, 2025, U.S. Commerce Secretary Howard Lutnick addressed an audience virtually at the BMO Eurasia U.S.-Canada Summit in Toronto, stating that the United States is determined to dominate the North American auto manufacturing sector and that Canada must accept a secondary role.
Lutnick dismissed the possibility of a trade deal that would remove the 25-per-cent U.S. tariff on Canadian-made vehicles, a tariff imposed with a carve-out for the value of U.S.-made parts in those vehicles. He emphasized that the era of free trade as it existed for decades between the two countries is over.
According to multiple sources present at the event, Lutnick said, "America is first, and Canada can be second," urging Canada to leverage its geographical proximity to the U.S. market to attract investments in sectors other than vehicle assembly, such as technology and mining.
These remarks came a day after U.S. President Donald Trump and Canadian Prime Minister Mark Carney met in Washington, D.C., where Trump reiterated the "natural conflict" between the two countries over auto production. Trump expressed frustration over competition for car manufacturing and steel production, noting ongoing negotiations but without detailing outcomes.
Canada exports approximately 90 per cent of the 1.3 million vehicles it manufactures annually to the U.S. The U.S. tariffs have significantly impacted this trade, prompting Canadian officials to seek relief.
Prime Minister Carney described his meeting with Trump as a "meeting of the minds," highlighting ongoing negotiations for tariff relief on steel, aluminum, and energy sectors. However, he faced criticism from opposition leaders, including Conservative Leader Pierre Poilievre, who accused Carney of conceding too much to the U.S., particularly regarding the auto sector.
Ontario Premier Doug Ford, who attended the Toronto summit, responded strongly to Lutnick's comments, warning that Ontario would retaliate if the U.S. continued to harm its auto and steel industries. Ford threatened to block exports of critical minerals and energy to the U.S. and refused to reintroduce American liquor products to Ontario shelves until a deal is reached.
Industry representatives expressed concern over Lutnick's stance. Lana Payne, head of Unifor, criticized the notion that Canada must come "second" in car manufacturing, emphasizing the long-standing integrated nature of the North American auto industry. Flavio Volpe, president of the Auto Parts Manufacturers Association, urged Canada to maintain a firm negotiating position to protect its interests.
At the same summit, former Trump chief of staff Reince Priebus noted the complexity of U.S. policy-making under Trump, describing the president as a "decider" who listens to competing voices, making it challenging to predict official positions.
The ongoing trade tensions underscore uncertainty about the future of the United States-Mexico-Canada Agreement (USMCA), with Canadian officials seeking sectoral deals to ease tariffs but facing a firm U.S. stance on auto manufacturing.
Sources: The Globe and Mail, Toronto Star, statements from U.S. Commerce Secretary Howard Lutnick, Prime Minister Mark Carney, Ontario Premier Doug Ford, and industry representatives at the BMO Eurasia U.S.-Canada Summit, Oct. 8, 2025.
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