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Canada says ending U.S. alcohol bans is essential for trade pact

Canada's ambassador to the United States told a trade council that lifting bans on American alcohol is a non-negotiable condition for a deal that would avert new tariffs.

In a Thursday video call with roughly 100 members of the Canada-U.S. trade council, ambassador Mark Wiseman said that removing Canadian bans on American alcohol is a prerequisite for sealing a trade deal that would prevent 50 percent tariffs on billions of dollars of exports. He described a preliminary agreement to cut steel and aluminum duties from 50 percent to 25 percent and to lower auto tariffs from 25 percent to 15 percent, while noting that the auto sector’s exemption request will be deferred to CUSMA talks.

Wiseman said about 35 Canadian officials are working in Washington to finalize the text within 24-48 hours. Former chief trade negotiator Steve Verheul cautioned that accepting sectoral tariffs now could erode Canada’s bargaining power and urged a formal rejection of the Trump administration’s tariffs. He also criticized the lack of industry consultation and warned that premature concessions could lead to further American demands.

Why it matters

The outcome will shape North American trade rules and affect tariffs on key Canadian industries.

In this story

U.S. alcohol banstrade dealtariffssteelaluminumauto dutiesCanada-U.S. trade councilsectoral tariffsCUSMA reviewindustry consultation
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