Canada Reportedly Prepared to Bringing Back US Alcohol to Avoid Trump’s 50% Tariffs

President Donald Trump speaks during a roundtable on the American mining industry, Friday, Aug. 7, at the State Department in Washington, as Secretary of State Marco Rubio listens. (AP Photo/Julia Demaree Nikhinson)

Canada is prepared to ease restrictions on U.S. alcohol sales as part of a broader trade agreement aimed at avoiding new tariffs threatened by President Donald Trump, CBC News reported Friday.

The discussions come ahead of an Aug. 19 deadline set by Trump, who has threatened to impose a 50% tariff on hundreds of Canadian imports while criticizing Canada’s provincial restrictions on American alcohol, dairy import quotas and auto tariffs.

According to CBC News, Canadian negotiators are willing to consider ending provincial bans on U.S. beer, wine and spirits, lifting retaliatory tariffs on American automobiles and making changes to dairy policies in exchange for the United States dropping the proposed tariffs and providing relief from existing duties on products such as steel and aluminum.

Canada is also seeking a joint announcement that negotiations over the Canada-United States-Mexico Agreement will resume this fall, according to the report.

The alcohol restrictions were introduced after Trump returned to the White House and threatened tariffs on Canadian goods. Several provinces responded by removing American alcohol products from government-run liquor stores, sharply reducing U.S. exports to Canada.

According to CBC, U.S. spirits producers have described the restrictions as “devastating,” while American wine sales in Canada fell by approximately $343 million in 2025.

However, any agreement involving alcohol sales could face political hurdles. Provincial governments ultimately control liquor distribution, and several premiers have publicly opposed restoring U.S. products to store shelves.

“There is not a chance in hell that U.S. alcohol is going back on the shelf,” British Columbia Premier David Eby said after Trump renewed his tariff threats last month.

Prime Minister Mark Carney has previously acknowledged that decisions about liquor sales rest with provincial governments, though he has suggested any changes should be part of a broader trade agreement.

The latest details emerged after Canadian Trade Minister Dominic LeBlanc and Canada’s chief trade negotiator, Janice Charette, met Thursday with U.S. Trade Representative Jamieson Greer in Washington.

LeBlanc described the discussions as “constructive and detailed” in a social media post following the meeting.

According to CBC, negotiators from both countries have agreed to hold daily meetings leading up to the Aug. 19 deadline, with Canadian officials warning their U.S. counterparts that imposing the tariffs would likely eliminate any political appetite to continue negotiations.

Carney said this week the talks are focused on “all strategic sectors,” including automobiles, as both sides work toward a broader agreement.

“We’re interested in a more comprehensive deal, a global deal that addresses the strategic sectors,” Carney told reporters Thursday. “Will we get all of that by the 19th of August? We’ll see. But we want to have pathways in order to get that.”

Trump continued his criticism of Canada during a rally Wednesday in Las Vegas, telling supporters that Canada had been “nasty” in its trade dealings with the United States.

Carney dismissed the remarks Thursday, saying his government remains focused on protecting Canadian workers and businesses as negotiations continue.