- The Carney government is trying to stave off new 50% tariffs on $28 billion worth of Canadian imports, including goods covered by CUSMA.
- Negotiations have intensified to more serious levels than in months, going beyond tariffs.
- Talks have centered on Canada making concessions on major U.S. trade irritants, including provincial policies, in exchange for tariff relief.
- Canada is open to compromise on issues including the boycott of American alcohol sales, Buy Canadian procurement policies, retaliatory levies on American autos, and the dairy supply management system.
- In exchange, Ottawa is pushing for a reduction in tariffs on key industries like steel and aluminum, but the U.S. is not expected to remove Section 232 tariffs outright.
- Canadian negotiators hope to reach an agreement before Trump’s latest threatened tariffs begin on Aug. 19, with one source describing that deadline as a 'cliff'.
- Next priorities in talks include security and defence matters, energy and critical minerals, and renegotiation of CUSMA.
- Provincial leaders, including Quebec and Manitoba, insist they will decide on the booze ban, while Ontario remains firm that any move on alcohol is paired with a trade deal.
Canada and the U.S. are ramping up negotiations for a comprehensive trade deal as President Trump's new 50% tariffs on $28 billion in imports loom. Sources indicate that discussions have intensified, focusing on Canadian concessions to address U.S. trade irritants in exchange for tariff relief.1234
The Canadian government is open to compromises on issues such as the boycott of American alcohol sales, cross-country 'Buy Canadian' procurement policies, and retaliatory levies on American autos. In return, Ottawa seeks a reduction in tariffs affecting key sectors like steel and aluminum.567
However, it is not expected that the U.S. will remove Section 232 tariffs outright, according to sources. The urgency of the negotiations is underscored by the looming deadline of August 19, described as a 'cliff' by one source.8
In addition to tariffs, the talks are expected to cover security and defense matters, including Canada's potential purchase of American F-35 fighter jets and participation in Trump's proposed missile defense system. The renegotiation of the Canada-U.S.-Mexico Agreement (CUSMA) is also on the agenda.9
Quebec Premier Christine Fréchette emphasized that the withdrawal of American products from the SAQ's shelves will remain until a fair deal is negotiated, while Manitoba Premier Wab Kinew stated that the alcohol ban will persist until a satisfactory agreement is reached.101112
"The plan is ... 'Come to the table, let’s get a trade deal done,' and we’ll talk about the alcohol," Kinew said, reinforcing the firm resolve of Canadian provinces in these negotiations.
“Ottawa is pushing for tariff relief on steel and aluminum, but the U.S. is unlikely to fully remove Section 232 tariffs. Provincial leaders, including Quebec and Manitoba, insist they will decide on the booze ban, with Ontario linking any alcohol move to a broader trade deal.”
