The clock ticked toward midnight on Friday. New U.S. tariffs on Canada were about to come into effect and negotiators cooped up across the street from the White House were still plodding through the differences on each side. Aides shuffled in and out with new drafts, adjusting and readjusting.
U.S. officials said they had offered Canada the best trade deal of any nation. Canadians believed it was a bad one. In the waning hours, both sides dug in even more.
One Canadian negotiator said it was as if “shadow figures were suddenly in the room,” raising topics that had supposedly been settled in previous days.
Back in Ottawa, Prime Minister Mark Carney got off the phone with Doug Ford, the premier of Ontario. Mr. Ford had told him plainly: Don’t take the deal.
Mr. Ford told Mr. Carney he would not comply with a key U.S. demand: restoring the sale of U.S. alcohol that he, alongside most other provincial leaders, had banned. American tariffs on Canadian steel and automobiles were still too high to enable their long-term survival, Mr. Ford had decided.
Mr. Carney called his team in Washington for the latest news from the negotiations. Then, just after 10:30 p.m., he pulled the plug and ordered them home.
The sticking points were many. In the last few hours, negotiators clashed over Canadian rules promoting French-language movies and shows online, as well as the Trump administration’s
demands to dictate Canada’s steel tariffs on other countries.Canada, in turn, insisted on more generous treatment for its autos, electric vehicles and products made with metal — and ultimately backed away from its offer to cooperate on the Keystone XL pipeline that President Trump has long desired, people familiar with the negotiations said.What led to the breakdown is a story of fundamental misalignment between the countries — ideological, economic and political. Ultimately, Mr. Carney decided to defy Mr. Trump and endure his economic and political targeting of Canada.
This account, which contains previously unreported details of the final days and hours of the trade negotiations, is based on interviews with five American and Canadian officials with direct knowledge of the talks, two former U.S. officials, as well as seven senior industry leaders on both sides of the border who were briefed throughout.
The interviews show that the red lines for the two sides were so far apart that it would have required major concessions, particularly by Canada, to come to a final agreement.
Howard Lutnick- Epstein neighbour, visitor to Epstein Island- LIAR- A really big part of the problem- Same as in many negotiations internationally- Iran, Russia as examples
The files revealed that Epstein and Lutnick were in business together as recently as 2014, investing simultaneously in a now-shuttered advertising company called Adfin.
NYT’s continues
The Lutnick Factor
Mr. Lutnick, a hard-charging former bond broker who has known Mr. Trump for decades, oversees the administration’s tariffs on cars, trucks, steel and aluminum. And in the coming days, he would take a hard line on those topics, issues that ultimately took down the talks.
On Tuesday night, U.S. and Canadian officials agreed on the outlines of a deal, and Mr. Trump proclaimed on social media that he had paused his tariffs until midnight Friday to finalize the paperwork.
But on Wednesday, as the two sides got into the details, particularly on metals and autos, snags emerged.
Mr. Lutnickwas wary of Canadian proposals that would lower the tariff on autos below the level he wanted.As word leaked last week that the United States would reduce its tariffs on Canadian steel and aluminum, U.S. companies lobbied the Commerce Department and the White House to preserve their protections.
Mr. Lutnick intervened on their behalf, including suggesting that only a certain volume of aluminum be subject to lower tariff rates.As word leaked last week that the United States would reduce its tariffs on Canadian steel and aluminum, U.S. companies lobbied the Commerce Department and the White House
to preserve their protections.Mr. Lutnick intervened on their behalf, including suggesting that only a certain volume of aluminum be subject to lower tariff rates.
The US is denying all this of course, but, the reporting looks solid- Lutnick did what Lutnick does- I’m surprised he didn’t have Kushner at his side?