Canada’s representative to the United States emphasized in a virtual meeting on Thursday that the reinstatement of American alcohol in Canadian stores is a crucial condition for finalizing a trade agreement with the U.S. and avoiding potential new tariffs. The ambassador, Mark Wiseman, delivered this message while briefing around 100 members of the Canada-U.S. trade council, comprised of various business entities and labor organizations.
The ongoing negotiations, which involve Canadian officials in Washington engaging with the Trump administration, aim to prevent the imposition of 50% tariffs on Canadian exports totaling billions of dollars before the impending deadline of midnight on Friday. Wiseman outlined a preliminary consensus to evade these tariffs during the 30-minute discussion, as relayed by three sources familiar with the call.
Wiseman disclosed that approximately 35 Canadian officials are diligently working at the Canadian Embassy in Washington to finalize the language of a prospective deal within 24 to 48 hours. The potential agreement includes provisions for reducing tariffs on steel, aluminum, and automobiles, as well as modifications to the allocation of dairy import licenses by the Canadian government, a move that could increase the presence of American dairy products in Canadian markets.
Following Wiseman’s departure from the call, Steve Verheul, a former chief Canadian trade negotiator, cautioned the council about potential risks associated with the deal. Verheul, known for his involvement in past trade negotiations leading to the Canada-U.S.-Mexico Agreement and NAFTA, expressed reservations about the implications of accepting sectoral tariffs and making certain concessions to the U.S.
Verheul highlighted concerns that Canada would be surrendering leverage prematurely by agreeing to certain terms, potentially facing increased demands from the American side in the future. He underscored the widespread opposition within the American industry to Trump’s tariffs and stressed the importance of maintaining duty-free trade, urging Canada not to accept the current sectoral tariffs as legitimate.
Furthermore, Verheul criticized the lack of consultation by the Canadian government with affected industries and premiers, contrasting it with the detailed briefings provided to the U.S. industry by the Trump administration. The council members expressed frustration over this disparity during the call. Another council adviser, former finance minister Chrystia Freeland, also participated in the discussion, raising concerns about the difficulties of reversing agreed-upon tariffs in the future, especially in the event of changing administrations in Washington.