Canada–US trade negotiations remain deadlocked after Washington's top trade official says Ottawa will not receive credit for concessions already made
United States Trade Representative Jamieson Greer said Wednesday that the Trump administration will not give Canada credit for trade concessions it has already made.
Speaking at the Aspen Security Forum in Washington, Greer said Ottawa’s decision to drop its digital services tax and walk back parts of its Online Streaming Act were simply the right thing to do.
“They don’t really get credit for doing something bad and then undoing it,” Greer said. “That’s just good practice on their part.”
What Canada–US trade negotiations look like right now
Talks between Ottawa and Washington remain stalled. The US formally announced it would not renew the Canada–US–Mexico Agreement — known as CUSMA — at the start of July.
Under the current structure, CUSMA stays in place under annual rolling reviews for up to a decade. After that, it expires if no extension is negotiated.
Canada and Mexico both pushed for a 16-year extension. Washington has since launched formal CUSMA renegotiations with Mexico, but not with Canada.
Greer said he is in weekly contact with Canadian trade counterparts. He added that he has put proposals to Ottawa to move things forward, but they haven’t seen a lot of improvement.
The relationship between the two countries had briefly stabilized after Prime Minister Mark Carney dropped the digital services tax in June 2025. That move was aimed at restarting suspended trade talks.
A limited deal on some sector-specific tariffs appeared close last October. But Washington froze talks again after Trump was angered by an Ontario-funded ad quoting former president Ronald Reagan criticizing tariffs.
For advisors tracking CUSMA renegotiation and its effect on Canadian equities, the stalled talks extend a period of meaningful portfolio risk — particularly in sectors with deep cross-border exposure.
Canadian trade tariffs remain a central sticking point
Greer acknowledged that Trump remains focused on reducing the US trade deficit with Canada.
He noted that Canada and China were the only countries to retaliate after Trump imposed sweeping tariffs — a characterization the Trump administration has used repeatedly.
On the deficit itself, Greer did not mention that the gap is largely driven by energy imports. Without oil, the US runs a trade surplus with Canada.
Canadian trade tariffs on steel, aluminum, automobiles, and cabinetry continue to affect industries with significant cross-border activity. These sectors remain outside CUSMA’s protections.
Meanwhile, Ottawa directed the Canadian Radio-television and Telecommunications Commission (CRTC) earlier this year to reconsider a decision that tripled streamers’ contributions to Canadian content. That move came after pressure from US interest groups and the US Ambassador to Canada Pete Hoekstra.
Greer said the change was welcome — but again, not something Canada should expect credit for.
What this means for Canadian advisors
Nearly half of Canadian advisors are already fielding tariff and trade questions from clients, according to recent Fidelity Investments Canada research.
The Greer comments add weight to those conversations. There is no framework deal in sight. Sector-specific tariffs remain in place. And the path to a formal negotiation with Canada, let alone a completed agreement, remains unclear.
“The reality is if the president and Prime Minister Carney have an understanding, I’m sure we can put together something that makes sense to get us over the hump,” Greer said. “We’re always going to trade some with Canada, just because they’re there.” For advisors managing client portfolios exposed to Canadian trade tariffs and cross-border sectors, that is not a timeline.
Canada–US trade negotiations remain the single biggest source of policy uncertainty for Canadian markets. Advisors should continue treating the outcome as unresolved and build client conversations around that reality.
