Canada ‘Not Going to Apologize’ to Trump, LeBlanc Says as Trade Talks Remain Stalled

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Canada’s trade dispute with the United States has moved into a more openly confrontational phase, but Ottawa is still leaving the door to negotiations unlocked. Canada-U.S. Trade Minister Dominic LeBlanc rejected President Donald Trump’s suggestion that Canada would return to Washington with an apology, saying the federal government would not apologize for defending Canadian workers, businesses and the economy. The exchange came as new U.S. import bans on selected Canadian alcohol, dairy products and motorcycles took effect on September 29, while detailed trade negotiations remained paused. Prime Minister Mark Carney has continued to say Canada is prepared to negotiate in good faith, but only on terms Ottawa considers consistent with Canadian sovereignty and economic interests. The result is a standoff in which both governments remain in contact, even as tariffs, import restrictions and political rhetoric continue to raise the stakes.

LeBlanc Rejects Trump’s Prediction of an Apology

The immediate flashpoint was Trump’s prediction that Canada would come back within weeks and say it was sorry. Speaking to reporters on September 29, LeBlanc rejected that premise. He said he did not expect the Canadian government to apologize for standing up for Canadian workers and businesses or defending the economy. His response followed Trump’s Oval Office comment that Canadians would return and say, “sir we are sorry,” after escalating tariffs and countermeasures.

LeBlanc also tied Ottawa’s position to the trade framework negotiated during Trump’s first term, arguing that the latest U.S. tariffs violated the agreement signed six years earlier. That framing presents Canada’s response not simply as a dispute over tone, but as a disagreement over the rules governing cross-border commerce. Carney took a less direct approach the same day, declining to engage with Trump’s language while repeating that Canada remained prepared to negotiate in good faith.

The Talks Are Stalled, but the Channel Is Still Open

Despite the public sparring, neither side is describing the relationship as completely closed. LeBlanc said detailed trade negotiations are not currently taking place, but officials from Canada and the United States remain in contact. He added that if Carney concluded a deal was possible that protected Canadian sovereignty and served the country’s economic interests, Ottawa would be ready to talk. That leaves a channel open even though formal bargaining has stalled.

Washington, however, has shown little urgency. U.S. Trade Representative Jamieson Greer said on September 25 that Trump was “comfortable where we are on Canada” and that the U.S. was still obtaining oil, gas, potash and agricultural products it needs from its northern neighbour. Greer said Canadians call periodically and discussions occur, but there was “no urgency” on the American side. In practical terms, contact continues without the momentum usually associated with active negotiations.

Nearly US$1 Billion in Canadian Imports Are Now Caught by Bans

The latest escalation arrived at 12:01 a.m. Eastern on September 29, when the United States began excluding selected Canadian goods from importation. The measures cover numerous alcoholic beverages, certain dairy-related products such as whey, and some motorcycles. An American Action Forum estimate cited by the Associated Press put the value of affected Canadian imports at about US$967 million based on 2025 trade, with alcoholic beverages accounting for roughly 87 per cent.

That is meaningful for the companies directly affected, but small beside the overall Canada-U.S. commercial relationship. The Associated Press put annual two-way trade at about US$880 billion. The bans are therefore another sign that the dispute is spreading from tariffs into outright market-access restrictions. They also arrived after many targeted products had already faced 50 per cent U.S. duties, meaning some businesses had seen trade become uneconomic before the formal bans took effect.

The Bigger Fight Covers Tens of Billions of Dollars in Trade

The import bans are one layer of a larger tariff dispute. Canada’s Department of Finance says the United States imposed 50 per cent tariffs on C$27.6 billion worth of Canadian goods effective August 22. Ottawa responded with dollar-for-dollar countermeasures on the same value of U.S. imports, with Canadian tariff rates of 15, 25 and 50 per cent taking effect September 8 across products including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.

The sequence shows how quickly the confrontation moved from negotiations to retaliation. Canada suspended talks rather than accept the terms then on the table, according to the federal government, while U.S. officials dispute Ottawa’s account of how negotiations broke down. Each new measure has created another group facing higher costs or reduced market access. That complicates settlement because the dispute now touches manufacturers, farmers, retailers, importers and workers on both sides.

The Consequences Are Starting to Show Up on Factory Floors

For Canadian businesses, the dispute is no longer an abstract argument about leverage. Stelco said up to 500 workers could be affected as it indefinitely idles cold-rolled and coated operations at its Hamilton, Ontario plant and shifts production to Nanticoke. The company said U.S. tariffs had sharply reduced the market for some products, while demand in markets it traditionally serves fell almost 25 per cent in the second quarter compared with the 2024 quarterly average.

Smaller exporters are feeling different pressure. Ontario’s Wolfhead Distillery told the Associated Press it had stopped shipping whisky to Michigan and was putting potential U.S. sales on hold. Quebec-based BRP also confirmed its three-wheel Can-Am Spyder and Canyon motorcycles are covered by the new U.S. restrictions, although most current-season production and shipments were already complete. The examples show how the same conflict can hit a steelworker, craft distillery and recreational-vehicle manufacturer differently.

Canada Still Depends Heavily on the American Market

Canada’s vulnerability comes from the depth of its economic integration with the United States. Statistics Canada reported that 71.7 per cent of Canadian merchandise exports went to the U.S. in 2025, down from 75.9 per cent in 2024. Separate Statistics Canada research estimated roughly 1.8 million Canadian workers, or 8.8 per cent of employment, were in industries dependent directly or indirectly on U.S. demand for exports.

The supply chains are intertwined rather than one-directional. Statistics Canada found that of C$922 billion in exports originating from Canadian production in 2024, C$644 billion went to the United States. Producing those U.S.-bound exports required C$118 billion in imports from the United States. Tariffs can therefore move through integrated supply chains in both directions, raising costs for Canadian producers while affecting American suppliers that sell inputs into Canadian manufacturing, energy and export industries.

Ottawa Has Put Billions Behind Its Tariff Response

Ottawa has tried to cushion the fallout with direct support as well as counter-tariffs. The federal government announced a C$7.5 billion package of new and expanded measures in August, on top of what it said was nearly C$25 billion in tariff-related support already provided. The package included another C$1.5 billion for the Regional Tariff Response Initiative and a C$500 million liquidity stream through the Business Development Bank of Canada’s Pivot to Grow program.

Those measures are meant to help companies manage cash-flow pressure, retool and find new customers. They cannot recreate lost U.S. demand overnight. A steel mill facing a shrinking market or a small distillery cut off from American buyers still has to make decisions about production, staffing and investment. The scale of the support shows Ottawa is treating the dispute as an economic adjustment challenge rather than merely a diplomatic disagreement.

Diversification Is Becoming a Bigger Part of Canada’s Strategy

Trade diversification has become the longer-term answer Ottawa is emphasizing alongside negotiations with Washington. Statistics Canada says merchandise trade with countries other than the United States rose 14.3 per cent in 2025 to C$553 billion, while non-U.S. exports increased 17.2 per cent. Carney has said he wants Canada to double non-U.S. trade over the next decade, a target intended to reduce exposure to shifts in American trade policy.

Recent investment announcements fit that strategy. LNG Canada’s Phase 2 expansion in British Columbia is expected to double the terminal’s export capacity to 28 million tonnes a year, strengthening Canada’s ability to sell energy into Asian markets. The project is valued at about C$33 billion and is expected to support thousands of construction jobs. Diversification will still take years because alternative markets cannot quickly replace the size, proximity and integrated supply chains of the United States.

CUSMA Is Still Alive Even as the Relationship Deteriorates

The standoff also sits on top of a broader question about CUSMA’s future. During the agreement’s mandatory joint review on July 1, the United States said it would not renew the pact in its current form. That did not terminate the agreement. U.S. and Canadian government statements confirm CUSMA remains in force while the three countries continue discussions about unresolved issues and possible changes.

Canada says the agreement remains fully in force until 2036 and can be renewed at any time for another 16-year period. That distinction matters because businesses still operate under a functioning continental trade pact even while sectoral tariffs and restrictions complicate the relationship. For now, the most accurate description is stalemate rather than rupture: formal Canada-U.S. trade talks are paused, political pressure is rising, and both governments are preserving room for a future deal without showing signs of accepting the other side’s terms.

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