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The United States has backed away from two contentious trade demands, withdrawing its positions on Canadian content discoverability and bilingual labelling requirements. Canada’s Trade Minister Dominic LeBlanc confirmed the shift on Thursday, describing it as a welcome development that could help revive stalled negotiations between the two countries.
LeBlanc Welcomes U.S. Reversal on Key Demands
“Canada welcomes that the U.S. is now withdrawing its positions on discoverability and labelling,” LeBlanc said in a statement. He added that the U.S. had confirmed measures to promote the French language and Canadian culture would not face future American trade action.
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LeBlanc expressed cautious optimism, saying Canada looks forward to “constructive U.S. clarifications on their other positions,” which he said could create the possibility of a mutually beneficial trade agreement that respects Canadian sovereignty.
The announcement came just one day after trade talks collapsed. Prime Minister Mark Carney said last-minute U.S. demands over the discoverability of Canadian content on streaming platforms and bilingual product labelling had become a non-negotiable sticking point for Canada.
Trump Denied Making the Demands
U.S. President Donald Trump had denied making those demands just days earlier, on Tuesday. Writing on Truth Social, Trump rejected the characterization outright. “I would never interfere with Canadians speaking French! In fact, I have never even thought of doing such a stupid thing,” he wrote.
Trump accused Prime Minister Carney of fabricating the issue for political gain. “This lie was made up by a weak and ineffective Prime Minister in an attempt to gain political support, which he has totally lost, from the people of Quebec. I love French Canadians!” he added.
Canada Adjusts Counter-Tariff List
Meanwhile, the broader trade dispute between the two countries continues to escalate. Canada’s counter-tariff response, announced Tuesday, includes raising duties on American steel and aluminum from 25 to 50 per cent. The federal government also plans to impose tariffs ranging from 15 to 50 per cent on hundreds of other U.S. exports, covering clothing, appliances and dairy products.
Late Wednesday, Finance Canada issued a statement saying it had received feedback from Canadian industries and was making adjustments to the counter-tariff list. Notably, seafood and fish products no longer appear on the list. The government said the removal aims to protect against broader economic harm, though it released no further details on the decision.
Canadian businesses continue to feel the pressure of Trump’s existing duties while awaiting Ottawa’s planned retaliatory measures to take effect. United States Trade Representative Jamieson Greer has warned on multiple occasions that the Trump administration will respond if Canada escalates its retaliation further. The U.S. withdrawal of its discoverability and bilingual labelling demands may signal some room for progress, but significant tensions over the broader tariff dispute remain unresolved.
