The Canadian government is preparing to meet some U.S. demands — including ending bans on American alcohol sales — as trade talks heat up ahead of the latest tariff deadline, according to sources.
U.S. President Donald Trump has threatened a new 50 per cent levy on hundreds of Canadian imports by Aug. 19, citing complaints about provincial booze bans, dairy import quotas and the auto tariffs.
The Canadian side is willing to offer movement on those concerns, according to industry sources with knowledge of the negotiations. The Globe and Mail first reported on possible concessions.
In addition to ending the booze bans, the Canadian side is considering lifting retaliatory tariffs on U.S. autos and making some changes on dairy, the sources said. They didn’t say what changes were on the table in regards to the dairy sector.
In exchange, Canada is pushing for the U.S. to drop the new 50 per cent tariffs, as well as relief from the sectoral tariffs on industries such as steel and aluminum, and a joint announcement that talks on the Canada-United States-Mexico Agreement (CUSMA) will resume in the fall.
The booze bans and auto tariffs were part of Canada’s initial response to Trump threatening tariffs when he returned to the White House last year.
Trump’s declaration that the 50 per cent levies were incoming cited U.S. complaints about how Canada distributes tariff-rate quotas for U.S. dairy products, arguing that Europe’s quotas are handled differently.
The industry sources also said Canada is working to reduce sectoral tariffs — on goods like steel, aluminum, lumber and autos — that have been in place since last year, though they said American negotiators have flatly indicated those levies won’t be removed entirely.
Details about the discussions come after Canada-U.S. Trade Minister Dominic LeBlanc and Canada’s chief trade negotiator Janice Charette met with U.S. Trade Representative Jamieson Greer in Washington on Thursday.
LeBlanc said the meeting was “constructive and detailed” in a social media post on Thursday.
Aug. 19 tariff date looming
The sources said the Canadian side has aggressively argued to the Americans that the Aug. 19 date will be a cliff-type moment, meaning there would be no political appetite among Canadians to keep talks going if the tariffs come into place.
Both sides have agreed to hold daily meetings at various levels up until that deadline, the sources said.
A number of provincial governments pulled American alcohol off the shelves in provincially run liquor stores, sending U.S. exports of wine, beer and spirits to Canada off a cliff. U.S. spirit-makers have said the ban has been “devastating” to their sales, while American wine sales in Canada plummeted $343 million US in 2025.
Premiers were holding an annual meeting when Trump issued his latest tariff threat. Despite the booze bans being one of the president’s latest gripes, a number of premiers flatly refused to restock American alcohol.
“There is not a chance in hell that U.S. alcohol is going back on the shelf,” B.C. Premier David Eby told reporters at that time.
Prime Minister Mark Carney, who joined the premiers for part of those meetings, said restocking American booze is ultimately a provincial decision. But he also suggested at the time that changes to booze bans should be part of a larger deal.
LeBlanc briefed the provincial and territorial governments following his Thursday meeting with Greer.
Carney said earlier this week that negotiators are focusing talks with their U.S. counterparts on “all strategic sectors,” including autos, as that deadline approaches.
“We’re interested in a more comprehensive deal, a global deal that addresses the strategic sectors,” he told reporters in Saguenay, Que., on Thursday.
“Will we get all of that by the 19th of August? We’ll see. But we want to have pathways in order to get that.”
Last month, Carney said he’d spoken with Trump and that they agreed to ramp up trade discussions.
Trump took a jab at Canada on Wednesday night during a rally in Las Vegas.
“I love tariffs, right? Because we’ve been screwed by tariffs used against us for years. By China, by Japan, by South Korea, by Germany, by everybody, by Canada,” Trump said, as the crowd cheered.
“Canada’s nasty. They are. They’re nasty,” he added. “I love the people, but they’re nasty. Nasty leadership.”
Carney brushed off Trump’s comment when asked about it on Thursday.
“Whatever adjective is used, we’re standing up for Canadian workers, for Canadian businesses,” he said.
Conservative Leader Pierre Poilievre called out Carney’s handling of the tariff dispute during a news conference on Thursday, saying: “It’s time to get results.”
“We’re calling on him to take the leverage that he has not yet squandered, take it to the bargaining table and get something in return for a change.”