Canadian Prime Minister Urges Provinces to Rescind US Alcohol Ban as Tariff Deadline Looms

Prime Minister Mark Carney speaks at a housing announcement in Toronto, on Wednesday, Aug. 5, 2026. (Photo: Sammy Kogan/The Canadian Press via AP)

Canadian Prime Minister Mark Carney has asked provincial leaders to end their boycotts of US alcohol as the country nears a trade deal with American negotiators, Nova Scotia Premier Tim Houston told reporters on Wednesday.

Earlier this week, President Donald Trump announced a last-minute delay of his 50% tariff on certain Canadian imports. Officials now have until Friday night to avoid an escalation that would affect between $20 billion and $29 billion worth of Canadian goods, or roughly 5% of what Canada ships to the US each year.

American alcohol — and the lack thereof — is one of the top priorities on the agenda. Eight of Canada’s 10 provinces have full or partial bans on US booze sales, a policy that lies entirely in the hands of provincial leaders like Tim Houston. Houston says that he’s willing to end his province’s boycott as part of “a fair deal,” though he noted that consumers may not be quite as eager to change their tune.

“Certainly the Prime Minister has asked us to look at that,” Houston told reporters at a virtual press conference. “It’s been an irritant; it’s been something that has really bothered the United States for so many reasons. Now, whether Nova Scotians or whether Canadians will actually buy it when it gets back on the shelves, that’s a whole ‘nother discussion.”

Little information has been shared about the tentative deal. Trump hinted in a Truth Social post that Canada may be restarting construction on Keystone XL, the planned oil pipeline from Alberta to Nebraska that was nixed in 2021 under the Biden administration. Other reports have suggested that the US may be lowering, but not eliminating, its tariffs on Canadian steel, aluminum and auto parts, while US Trade Representative Jamieson Greer’s office added that the deal may include “comprehensive market access for all American goods, economic security commitments” and “digital trade alignment.”

“As negotiations are still ongoing and we are working collectively with the U.S. administration towards a finalized agreement, we will not provide further comments,” Canada-U.S. Trade Minister Dominic LeBlanc told CNBC in a text message statement on Wednesday.

Alcohol sales may throw a wrench in the proceedings. Though it’s been reported that Canada is prepared to ease its booze restrictions as part of a broader trade agreement, the decision ultimately falls under the jurisdiction of provincial leaders, several of whom have publicly opposed the move.

The boycott kicked off in early 2025 when Ontario Premier Doug Ford pulled US alcohol from shelves in protest of the Trump administration’s steel and aluminum tariffs. The Liquor Control Board of Ontario alone generates over $7 billion in gross annual sales, around $1 billion of which consisted of US alcohol before the ban took effect.

According to the White House, US alcohol exports to Canada fell by approximately 81% between March 2025 and February 2026, costing the industry hundreds of millions of dollars.

Doug Ford, Tim Houston and Quebec Premier Christine Fréchette have said they’re willing to restock American-made alcohol if key concessions are made during trade negotiations. British Columbia Premier David Eby — one of the boycott’s most vocal proponents — remained tight-lipped when asked about the ban by reporters on Thursday.

“Agreement or not, we will not go back to the way things were before,” Eby said. “We will continue to push forward our work to find new trading partners and secure major projects to build a stronger, more resilient economy that benefits everyone.”