Federal government signals readiness to lift U.S. alcohol tariffs if trade deal closes before August 19
Ottawa has told provinces to prepare for restocking American booze and dropping protectionist procurement rules. Deal remains uncertain despite briefing on negotiations.
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The federal government has signalled provinces to be ready to put American alcohol back on shelves in case a tariff deal is reached before U.S. President Donald Trump's latest deadline of August 19, according to sources familiar with the negotiations.
Canada-U.S. Trade Minister Dominic LeBlanc briefed provincial counterparts on Friday about the state of ongoing trade talks. The federal government does not believe a deal is imminent, however, as major disagreements persist and the two sides remain far apart on several key issues.
Sources said the federal government has also asked provinces to be prepared to drop retaliatory procurement rules that favour Canadian suppliers in case an agreement is reached.
Canada and the U.S. have intensified trade negotiations after Trump threatened to impose a 50% tariff on hundreds of Canadian goods starting August 19. The president cited, in part, the fact that a number of provincial governments pulled American alcohol off shelves in provincially run liquor stores.
Under the deal currently under discussion, the U.S. would refrain from imposing the new 50% levies while also lowering—but not fully eliminating—sectoral tariffs already in place on Canadian steel, aluminum, autos, and forest products.
Ontario has borne significant costs from the alcohol removal, with products expiring while in provincial custody.
What are the specific remaining disagreements blocking a deal?
If a deal passes, what timeline will Ontario have to restock and clear the backlog of stored alcohol?
We'll update this story as answers emerge.
By the numbers
What is the U.S. tariff deadline mentioned in the article?
August 19, 2026. President Donald Trump threatened to impose a 50% tariff on hundreds of Canadian goods starting on this date.
What tariff rate did Trump threaten to impose?
50% on hundreds of Canadian goods, according to Trump's threat that prompted intensified Canada-U.S. trade negotiations.
