LeBlanc signals trade deal still possible as Greer rejects Canadian account of French-language dispute

Federal minister Dominic LeBlanc suggested a Canada-U.S. trade deal may still be possible after U.S. Trade Representative Jamieson Greer said changes to French-language internet policies were not a priority for Washington. LeBlanc, Canada's minister in charge of the Canada-U.S. trade file, posted on X that Canada welcomes the U.S. withdrawing its positions on discoverability and labelling and confirming that measures to promote French language and Canadian culture will not be subject to future U.S. trade actions The Globe and Mail. He added that Canada looks forward to further constructive U.S. clarifications on its other positions, which would create the possibility of a mutually beneficial trade agreement that respects Canadian sovereignty.

The exchange follows a Wednesday interview Greer gave to CBC News, conducted in both English and French, in which he rejected the Canadian version of events regarding how French-language issues were discussed during negotiations The Globe and Mail. Greer said the American side raised concerns about Canadian policies urging online streaming companies to promote the discoverability of French programming but did not insist on changes. He said there is no way his side would have allowed the trade deal to fall apart over the French-language discoverability issue, calling it the farthest thing from a red line The Globe and Mail.

Greer's account diverges sharply from how the file has been framed in Ottawa. Earlier this week, Greer called reports that French-language protections were up for debate "a funny fake story," saying "That is not true" in a CNBC interview The Guardian. In the same interview, Greer said the United States has no issue with the French language but rather with what he called "discriminatory" Canadian policies CNN.

The French-language dispute emerged after a tentative Canada-U.S. trade deal was struck on Aug. 18 CBC News. Prime Minister Mark Carney had said Canada cannot accept a U.S. trade deal that would weaken the French language The Guardian, and was praised for rejecting the U.S. trade proposal. Carney had previously rejected the notion that the U.S. "dictates the terms" of the USMCA trade talks The Globe and Mail.

The broader context here is a trade relationship that has deteriorated rapidly since the tentative deal was reached. After trade negotiations fell apart late Friday, U.S. President Donald Trump approved 50-per-cent tariffs on about $28-billion worth of Canadian goods The Globe and Mail. Ottawa responded with dollar-for-dollar tariffs on Tuesday targeting nearly 900 items. Late Wednesday, the Finance Department announced it would adjust its planned tariffs, including removing seafood and fish products from the countertariff list to protect against broader economic harms The Globe and Mail.

Greer said there are currently no open channels of communication between the U.S. and Canada and suggested the U.S. will respond if Canada follows through with its planned countertariffs The Globe and Mail. He said if there is further retaliation from the Canadian side the U.S. will not sit down and take it, and advised Canada not to retaliate.

The USTR also pushed back on Canadian characterizations of what derailed the talks. Greer rejected Canada's claim that the U.S. side brought new last-minute demands to the table, saying it was Canada that pushed for additional changes related to the treatment of the auto sector and large trucks The Globe and Mail. He also rejected Canadian characterizations that the U.S. had insisted on control over Canadian trade negotiations with other countries, saying the conversations were about creating a fortress North America policy in areas like steel, aluminum and autos.

The dispute over the factual record of what was discussed during negotiations is unusual in its directness. Greer's decision to conduct the CBC interview in both official languages and to publicly dispute the Canadian framing of the French-language issue suggests an effort to shape the narrative not just in policy terms but in political ones, directly addressing a Quebec audience that has been central to the domestic reception of this file.

For LeBlanc's part, the minister's public posture has been consistent on certain core files. He said Canada won't give ground to U.S. demands around French-language labelling rules and dairy supply management in the USMCA talks The Globe and Mail, a position he maintained when he returned to Washington in late July in an effort to advance trade talks as Ottawa sought to avoid the imposition of punishing new U.S. tariffs The Globe and Mail. Carney had posted a message on social media congratulating LeBlanc and Greer on what he called "significant progress" in the trade talks The Globe and Mail.

What remains is a narrow path. LeBlanc's statement that a deal respecting Canadian sovereignty is still possible, contingent on further U.S. clarifications, stands against Greer's assertion that there are no open channels and his explicit warning against Canadian retaliation. The Finance Department's decision to pare back its countertariff list by removing seafood and fish products suggests Ottawa is calibrating its response to limit collateral economic damage, even as the 50-per-cent U.S. tariffs on roughly $28 billion in Canadian goods remain in force. Whether the clarifications LeBlanc says he is seeking materialize, and whether the communication channels Greer says are closed reopen, will determine whether the Aug. 18 tentative deal can be revived or whether the relationship settles into a protracted tariff standoff.