Factbox

Factbox-Key US complaints against Canada ahead of trade review

OTTAWA, June 30 (Reuters) - The U.S., Canada and Mexico are due to meet on July 1 to review a trilateral trade agreement after a period of heightened tensions between Washington and Ottawa.

The agreement, known as USMCA, must be reviewed every six years under a deal ‌made during U.S. President Donald Trump's first term. Trump has been noncommittal on renewal.

As Trump threatens Canada by calling the country the 51st U.S. ‌state, Canadians have cut back on travel and stopped buying American products. The opening of a new bridge connecting Windsor in Ontario to Detroit has been delayed.

Below are some of the issues the U.S. Trade ​Representative's Office (USTR) highlighted in its 2026 National Trade Estimate report on Canada released earlier this year. A spokesperson for Canada's minister in charge of U.S. trade declined to comment on these irritants.

Washington has criticized Canada's supply-managed dairy, poultry and egg sectors, saying production quotas and tariff-rate quotas limit access for U.S. exporters. Canada imposes tariffs that can exceed 200% on imports above quota levels.

The U.S. has also complained about Canada's administration of dairy import quotas created under USMCA and raised concerns over milk pricing policies and market ‌access for U.S. dairy products. Prime Minister Mark Carney's government ⁠has said previously supply management will not be on the negotiating table.

The U.S. says Canada's new Buy Canadian initiative gives preference to Canadian firms and domestically produced steel, aluminum and wood in major government contracts.

Washington has also objected to measures adopted by ⁠provinces including Ontario, Quebec and British Columbia that restrict or disadvantage U.S. suppliers in procurement competitions.

Most Canadian provinces control alcohol distribution through government-run liquor boards, which the United States says impose barriers ranging from listing restrictions and pricing rules to distribution requirements.

The issue became even more contentious after several provinces stopped distributing U.S. alcohol products in response to Trump's ​tariffs ​on goods from Canada from last year. Ontario Premier Doug Ford has refused to put U.S. ​liquor back on shelves unless tariffs are removed or a new ‌trade deal is reached.

DIGITAL SERVICES TAX AND ONLINE STREAMING

The U.S. continues to monitor Canada's digital services tax, which Ottawa pledged to repeal but had not formally eliminated by the end of 2025, the March report from USTR said.