Canada-U.S. Trade Talks on Ice — But New Meeting Planned Amid Rising Tensions

President Donald Trump meets for the first time with Canadian Prime Minister Mark Carney in Washington.

Canada’s trade minister says high-level talks with the United States are back on the calendar — even as relations between Ottawa and Washington remain strained ahead of a mandatory review of the Canada-U.S.-Mexico Agreement (CUSMA).

Dominic LeBlanc confirmed this week that he will meet in the coming weeks with U.S. Trade Representative Jamieson Greer, the trade czar under U.S. President Donald Trump. The meeting comes after Greer publicly criticized Canada during an appearance on Fox Business, accusing Canadian officials of maintaining barriers that make serious trade negotiations difficult.

“They refuse to sell U.S. wine and spirits on their shelves,” Greer said. “There are a variety of issues they have not addressed and aren’t addressing — and this makes it a big challenge and an obstacle for starting real negotiations.”

Alcohol Dispute Adds Fuel to the Fire

The alcohol dispute stems from last year, when several Canadian provinces pulled American wine and spirits from government-run liquor store shelves. The move came after Trump imposed tariffs on Canada and repeatedly floated the idea of annexation — comments that sparked outrage north of the border.

While Prime Minister Mark Carney attempted to ease tensions during two visits to the Oval Office, relations reportedly cooled again after Trump took issue with an Ontario-sponsored advertisement. The ad quoted former U.S. President Ronald Reagan criticizing tariffs — a message that reportedly angered Trump and led to talks being frozen once more.

CUSMA Under Pressure

The trilateral trade pact — formally known as the Canada-United States-Mexico Agreement (CUSMA) — has largely shielded Canada and Mexico from the harshest impacts of Trump’s tariff agenda. However, uncertainty is mounting as the agreement faces a mandatory review this year.

Trump has openly mused about withdrawing from the deal, and Greer has suggested the U.S. could pursue separate bilateral agreements with Canada and Mexico instead of maintaining the trilateral framework.

That possibility echoes the tense renegotiations during Trump’s first term, when the original CUSMA replaced NAFTA. At the time, then-U.S. Trade Representative Robert Lighthizer wrote that Washington and Mexico initially struck an understanding on their own — and that “Canada was welcome to join if it wanted.” According to Lighthizer, the U.S. and Mexico were prepared to move forward bilaterally if Canada refused.

China, Dairy, and Growing Frustrations

LeBlanc said he addressed Greer’s public comments directly during a recent phone call and believes further discussions can still be “fruitful.” Speaking from Monterrey, Mexico, where he is leading a major Canadian trade mission, LeBlanc emphasized that many of the issues raised publicly by the U.S. have also been the subject of private discussions for some time.

Still, tensions remain high.

Trump has recently criticized Canada’s limited trade arrangements with China involving electric vehicles and agriculture. He has also repeatedly targeted Canada’s dairy supply management system and claimed the United States does not need Canadian imports — rhetoric that has become a recurring theme.

Meanwhile, the Trump administration has been noticeably warmer toward Mexico, which currently faces lower tariffs than Canada.

What Happens Next?

Despite frozen negotiations and sharp rhetoric on both sides, Canadian officials insist communication channels with Washington remain open. The upcoming meeting between LeBlanc and Greer could determine whether talks thaw — or whether North America’s trade framework faces another high-stakes showdown.

With CUSMA’s mandatory review looming, the next few months could reshape trade relationships across the continent.