Feds tell provinces to get ready to put American booze back on the shelves: sources

Feds tell provinces to get ready to put American booze back on the shelves: sources

Major disagreements still need to be resolved before any deal, sources say

The federal government has told the provinces to be ready as soon as possible to put American alcohol back on the shelves in case a tariff deal is reached before U.S. President Donald Trump's latest deadline, according to sources.

The sources said the federal government doesn't believe a deal is imminent, however, as there are still major disagreements and the two sides remain far apart on some issues that need to be resolved.

Canada-U.S. Trade Minister Dominic LeBlanc briefed his provincial and territorial counterparts on the state of the negotiations on Friday. The sources are familiar with the briefing but were not authorized to speak publicly.

U.S. booze might end up back on Canadian shelves, but have we lost the taste for it?

In addition, the federal government has also asked provinces and territories to be prepared to drop retaliatory procurement rules that favour Canadian suppliers in case a deal is made, the sources said.

Canada and the U.S. have ramped up trade talks after Trump threatened to slap a hefty 50 per cent tariff on hundreds of Canadian goods starting Aug. 19.

The president cited complaints about provincial booze bans, dairy import quotas and the auto tariffs.

According to the sources, the current deal under discussion would see the U.S. refrain from imposing those new levies, while also lowering — but not fully eliminating — sectoral tariffs already in place on Canadian steel, aluminum, autos and forest products.

In exchange, Canada would have to make concessions on the three areas of complaints cited in Trump's latest threat.

New tariffs set for next week are 'in response to Canadian retaliatory measures': USTR

CBC News reported last week that ending the booze bans was something Canada was prepared to offer in exchange for tariff relief.

In addition to the 50 per cent levy slated to come into force next Wednesday, Trump has maintained sectoral tariffs on specific industries since last year.

Prime Minister Mark Carney has previously said he's aiming to strike a deal that would address those levies in addition to the latest threat.

LeBlanc has met with U.S. Trade Representative Jamieson Greer multiple times in recent weeks. Greer said Thursday they are aiming to have "options" available for both Carney and Trump following the latest talks. LeBlanc is expected to stay in Washington over the weekend as talks continue.

On Friday, Greer told reporters in Iowa that talks with Canada had been "constructive" but that Washington was pushing to have retaliatory measures like the booze bans be pulled.

"My sense is the Canadians, they want to have a more conciliatory approach. But we'll see," Greer said.

"At the end of the day, we're going to do what's best for America. If there's a way to bring Canada along with that, we're happy to do that. But we're mostly focused, first and foremost, on making sure President Trump's trade policy is executed."

Industry sources previously told CBC News that Canadian negotiators have aggressively made it clear they see the Aug. 19 date as a cliff-type moment, meaning there would be no political appetite among Canadians to keep talks going if the 50 per cent tariffs come into force.

'Fair deal' required for U.S. alcohol to return to Ontario shelves, Ford says

The booze bans were part of Canada's initial response to Trump threatening tariffs when he returned to the White House last year. They've been a sticking point for the Americans ever since.

The bans sent U.S. exports of wine, beer and spirits to Canada off a cliff. U.S. spirit-makers have said they've been "devastating" to their bottom line, while American wine sales in Canada plummeted $343 million US in 2025.

Ontario wineries see boom in demand amid U.S. booze ban

On Thursday, Ontario Premier Doug Ford — a frequent critic of Trump — said he'd be "more than happy" to bring U.S. booze back onto his province's shelves if a fair deal is reached that protects Ontario's steel, auto, forestry, agriculture and manufacturing sectors.

Ford also said his message to Americans is that "a tariff on Canada is a tax on the American people."

"Remember, when it comes to the [U.S.] midterms, you have to get that bully and send him a message," Ford said.

Even in American alcohol does become available again, a number of Canadians previously told CBC News that they've no intention of buying any.

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.