What Canada Is Offering the U.S. in Trade Talks: Concessions, Opposition, and the August 19 Tariff Deadline

Specific Concessions Ottawa Is Offering

Based on reports from multiple sources briefed on the talks, Canada has offered or is prepared to offer:

• Repeal of retaliatory auto tariffs — Removing Canada's counter-tariffs on U.S.-made automobiles that were imposed in retaliation for similar U.S. measures .
• Ending provincial bans on U.S. alcohol — Ottawa is prepared to end the province-level boycotts of American wine, beer, and spirits that have been in place since March 2025, when all provinces halted purchases of U.S. alcohol products . This is a direct response to a White House proclamation citing the provincial bans as a key trade irritant .
• Dairy quota reallocation — Adjusting how Canada allocates existing dairy import quotas to address long-standing U.S. complaints about the administration of supply management, though Washington is not pushing to dismantle Canada's supply management system entirely .
• Steel and aluminum quota system — Reviving a proposal to subject Canadian steel and aluminum exports to a managed quota in return for lower U.S. tariffs on those metals. This plan was previously on the table last fall .
• A longer list of Trump administration trade demands — Sources say Ottawa is negotiating over "a long list" of U.S. demands, with both sides having exchanged written bargaining positions .

Relief Canada Is Seeking in Return

Canada's core objective is the removal or significant reduction of all of Trump's sectoral tariffs, including:

• The threatened 50% tariff on roughly $20 billion in additional Canadian goods, set to take effect August 19 . This would hit nearly 5% of Canada's total shipments to the U.S. .
• Existing 50% tariffs on steel and aluminum .
• Existing 25% tariffs on derivative metal-containing products .
• One source with knowledge of the talks told CTV News that Canada is seeking "favoured nation" status across all sectors .

Domestic Opposition That Has Emerged

Several powerful domestic stakeholders are pushing back against key concessions, particularly the alcohol piece:

• Ontario Premier Doug Ford has refused to lift the province's ban on U.S. alcohol unless the U.S. first removes its sectoral tariffs, and has said Canada should respond "dollar for dollar" to Trump's latest threat . Ontario Finance Minister Peter Bethenfalvy reiterated that the province's "resolve is firm" to keep U.S. liquor off LCBO shelves until a comprehensive deal is detailed .
• British Columbia Premier David Eby said "there is not a chance in hell" U.S. alcohol will be restocked in B.C. stores .
• Quebec's government declared that alcohol sales fall exclusively under provincial jurisdiction and stated "it is Quebec — and Quebec alone — that will make this decision," signaling defiance of any federal push to end the booze bans .
• Canadian dairy farmers issued public warnings against any concessions involving the dairy sector as talks intensify .
• Political blowback for Carney — Carney won last year's election partly on an "elbows up" platform against Trump, and has already faced criticism for making concessions without receiving anything in return. An agreement could be a "tough political sell" domestically, especially in Quebec ahead of a provincial election .

How Negotiations Are Proceeding

• High-level engagement — Carney and Trump agreed in late July to expedite trade talks, and negotiations resumed in Washington in early August after months of little direct discussion .
• Intensive talks — Canada's Trade Minister Dominic LeBlanc and chief negotiator Janice Charette have been shuttling to Washington. A "small army" of Canadian negotiators and experts is planning to camp out at the Canadian Embassy on Pennsylvania Avenue for a full-court press .
• Written proposals exchanged — Both sides have traded written bargaining positions .
• Cautious optimism — Three sources told The Globe and Mail the Canadian team is "cautiously optimistic" a deal can be reached, and one U.S. source also reported optimism. Canada is not pushing for an extension beyond August 19 .
• Fluid and fragile — All sources caution that talks and proposals remain fluid and "could still fly off the rails," and that Trump has not yet signed off on any of the proposals being discussed at the bargaining table .
• Carney's fallback — Carney has said Canada is ready to "get tougher" with retaliatory measures if no deal is reached, including possible export curbs and additional duties .