CCarney Urges Canadian Provinces To Lift US Alcohol Ban As Trade Deal Nearsanadian Prime Minister Mark Carney has asked provincial governments to restore American alcohol to store shelves as Canada and the United States move closer to a trade agreement aimed at easing months of tariff tensions.
Canadian Trade Minister Dominic LeBlanc said negotiators were “very close” to reaching a deal after another round of talks in Washington with US Trade Representative Jamieson Greer. However, he cautioned that further work was still required before an agreement could be finalised.
The negotiations come after US President Donald Trump delayed for three days the introduction of new 50% tariffs on about $20 billion worth of Canadian goods. The tariffs are now due to take effect on Saturday if the two countries fail to conclude an agreement.
Several Canadian provincial leaders said Carney had asked them to end restrictions on sales of US alcohol, introduced last year in retaliation for American tariffs.
The alcohol boycott has become one of Washington’s major complaints in the negotiations. Most Canadian provinces removed American wine, whiskey and other alcoholic drinks from government-controlled outlets after Trump imposed tariffs on Canadian products.
Reports indicate that the emerging agreement could also include significant reductions in US tariffs on Canadian steel, aluminium and automobiles.
Under proposals being discussed, tariffs on Canadian steel and aluminium could fall from 50% to 25%, while tariffs on Canadian-built vehicles could be reduced from 25% to around 15%. Some details, including rules governing North American content in vehicles, remain unresolved.
Trump has also said Canada would make concessions affecting American agricultural exports, although Canadian officials have maintained that the country’s dairy supply-management system will remain intact.
Some provincial leaders have expressed reluctance about restoring American alcohol. Manitoba Premier Wab Kinew said his government was not enthusiastic about the move but suggested provinces might cooperate if it helped secure a broader agreement.
Public opinion could complicate Carney’s position. A recent Leger survey found that 56% of Canadians wanted the government to make no further concessions to Washington.
Canada and the United States are among the world’s largest trading partners, and business groups on both sides have warned that a prolonged tariff dispute could raise costs, disrupt supply chains and weaken investment.
A successful interim agreement could also clear the way for broader negotiations over the future of the United States-Mexico-Canada Agreement, USMCA.