Canada is considering concessions in trade talks with the United States, including ending provincial bans on U.S. alcohol, to avoid an additional set of tariffs set to take effect in less than two weeks, a source familiar with the ongoing negotiations confirms with CityNews.
The source’s identity is being protected as they have not been authorized to speak publicly on the matter.
U.S. President Donald Trump has threatened a new round of 50 per cent tariffs on a range of Canadian goods, ranging from hockey sticks to wine to cement, that are set to take effect on August 19.
The new tariffs would not be exempt under CUSMA, Trump’s administration said.
According to the source, the U.S. would scrap those tariffs and lower separate tariffs on lumber, aluminum and steel in exchange for the U.S. being given the right of first refusal for energy and critical exports — and Canada walking back its liquor bans.
All provinces have currently banned the sale of U.S. alcohol, with the exceptions of Alberta and Saskatchewan.
When the latest 50 per cent tariff was announced by Trump, Prime Minister Mark Carney said it was up to the provinces to decide if they wanted to remove their respective booze bans.
“The provinces individually took those decisions in response to a series of tariffs that were put in place, and also threats to our sovereignty. Those measures have been supported by provincial citizens … the decision to change that, first and foremost, will be taken by the provinces themselves, each individually, and should only be taken, in my judgement, as part of an overall agreement and that’s what we will work to accomplish,” Carney said.
CityNews has reached out to Ontario Premier Doug Ford’s office for comment and is awaiting a response to the latest developments.
Ford has previously expressed frustration with President Trump’s strong-armed approach to trade relations and defended Ontario’s ban on U.S. booze.
“He’s (Trump) nothing but a bully, that’s all he is, and you have to stand up to the bullies in the schoolyard or they’re going to take your lunch money,” Ford said late last month after Trump announced the new 50 per cent tariffs.
More to come
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