Prime Minister Mark Carney says Canada will intensify trade negotiations with U.S. President Donald Trump following Washington’s announcement of 50 per cent tariffs on nearly US$20 billion worth of Canadian goods, while several provincial premiers refuse to restore American alcohol to store shelves.
Carney spoke with Trump after the tariff decision and said both leaders agreed to accelerate discussions aimed at reaching a broader Canada-U.S. trade agreement.
“I’ve spoken with the president, we agree to intensify discussions. We’ll begin that right away, and this is part of the negotiation. So the first objective is to get a comprehensive agreement,” Carney told reporters Tuesday.
Carney said Canada would consider all available options if the tariffs proceed. He argued that provincial restrictions on American alcohol should only be addressed through a wider settlement covering U.S. tariffs on major Canadian industries.
The new duties are scheduled to take effect within 30 days of Trump’s announcement. They target Canadian products including wine, dairy goods, cement, furniture, clothing, fishing equipment, swimming pools and hockey gear.
The affected imports were worth nearly US$20 billion in 2025, representing about 5.2 per cent of total U.S. goods imports from Canada. Energy, potash, fish and products subject to separate sectoral tariffs are excluded.
The Trump administration invoked Section 338 of the U.S. Tariff Act of 1930, accusing Canada of discriminating against American automobiles, alcohol and dairy products.
Several provinces removed U.S. beer, wine and spirits from government-controlled liquor stores in response to earlier American tariffs.
British Columbia Premier David Eby rejected pressure to reverse the policy, saying there was “not a chance in hell” that American alcohol would return to provincial store shelves.
Ontario Premier Doug Ford also urged Canada to respond firmly. Ford called for dollar-for-dollar retaliation if Washington follows through with the tariffs and said Canada should use its energy, potash and other exports as economic leverage.
Alberta and Saskatchewan have taken a different approach by returning American alcohol to store shelves. Saskatchewan Premier Scott Moe urged Ottawa to focus on securing a negotiated settlement, describing the Canada-U.S. relationship as more important than any individual president or prime minister.
Despite differences over liquor policies, premiers broadly condemned the 50 per cent tariffs and called for a coordinated national response.
The tariff announcement has also affected diplomatic relations. Canada cancelled a planned joint ceremony with U.S. officials for the opening of the Gordie Howe International Bridge, deciding to hold a separate Canadian event instead.
Carney now faces a 30-day negotiating window to seek an agreement before the duties take effect. Failure to reach a settlement risks another round of Canadian countermeasures and deeper disruption to cross-border trade.
