too bad you're refusing

Hello everyone,

  • Would you like some pie?
  • No, thanks.
  • Too bad you’re refusing. It’s delicious.

Is “Too bad you’re refusing” correct in a situation like this? If not, what a native English speaker would say in such a situation?

Thank you.

Would you like some pie?
No, thanks.
Are you sure? It’s delicious.

I cannot imagine anyone would naturally use anything like ‘too bad …’ there, but if you REALLY had to do so, then it would be:
Too bad you don’t want any, it’s delicious.

Thank you, Beeesneees.

Does ‘Are you sure?’ mean ‘Are you sure you don’t like any pie?’ in this context?