Canada’s lead trade negotiator warned U.S. counterparts more tariffs could halt trade talks, sources say

Canada’s lead trade negotiator with the U.S. Janice Charette has warned her American counterparts that if the White House imposes new 50 per cent tariffs on Aug. 19, it could put further trade talks at risk.

Industry sources tell CTV News there was no ultimatum given to U.S. Trade Representative Jamieson Greer, but that he does understand the reality of the situation.

Charette’s comments were first reported by The Globe and Mail on Wednesday.

According to one industry source, it was conveyed to Greer that there is no way the federal government can push the provinces to return U.S. alcohol to store shelves without comprehensive and meaningful tariff relief for affected industries like steel and aluminum.

CTV News is not identifying the sources who are not authorized to disclose the details of their briefings and discussions on the trade talks.

Provincial bans on U.S. alcohol are among the primary policies highlighted by Trump as an irritant. Eight out of the 10 provinces – excluding Alberta and Saskatchewan – have removed U.S. alcohol from store shelves since last year.

Ahead of next week’s deadline, Canada-U.S. Trade Minister Dominic LeBlanc and Charette are in Washington and met Greer on Tuesday for the third time in as many weeks.

Last week, industry sources told CTV News that proposals being discussed between Canadian and American officials include removing the counter-tariffs on autos and provincial bans on alcohol. Proposals are also being exchanged about changing how dairy quotas are managed.

In return, Canadians are seeking relief on Section 232 tariffs. Under that section, the U.S. has imposed 15 to 50 per cent tariffs on steel, aluminum and copper products, 25 per cent tariffs on autos and trucks and 10 per cent tariffs on softwood timber and lumber.

CTV News also reported Tuesday that both Canadian and U.S. trade representatives are aiming to present a layout of a trade deal in front of Trump days before the Aug. 19 deadline.