Canada prepared to halt booze bans, meet other U.S. demands in exchange for tariff relief: sources

Canada prepared to halt booze bans, meet other U.S. demands in exchange for tariff relief: sources

Trump has threatened hefty tariffs on swath of new goods by Aug. 19

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 will resume in the fall.

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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 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.

The sources said the Canadian side has aggressively argued to the Americans that the Aug. 19 date will be a cliff-type moment if the tariffs come into place, depleting political appetite to keep talks going.

Both sides have agreed to hold daily meetings at various levels up until the Aug. 19 deadline, the sources said.

Darren Major is a senior writer for CBC's parliamentary bureau in Ottawa. He previously worked as a digital reporter for CBC Ottawa and a producer for CBC's Power & Politics. He holds a master's degree in journalism and a bachelor's degree in public affairs and policy management, both from Carleton University. He also holds a master's degree in arts from Queen's University. He can be reached at darren.major@cbc.ca.