President Donald Trump by Manitoba Premier Wab Kinew, who called him a “bad person” and “not to be trusted” while urging Ottawa to keep fighting rather than rush into concessions. The high-stakes diplomatic standoff unfolds as Canadian trade officials work to finalize an agreement in Washington before postponed U.S. tariffs take effect.
Trade Talks Advance in Washington as Tariffs Loom
According to LeBlanc, officials are making progress and Canadian representatives will remain in the U.S. capital to continue working on the deal. President Trump has characterized the emerging agreement as very fair to both sides. U.S. tariffs on approximately $20 billion worth of Canadian imports are currently postponed until 12:01 a.m. Saturday, though neither side has released the full terms.
Parallel reporting from CTV News highlights additional pressure from federal Conservative Leader Pierre Poilievre. In an open letter to Prime Minister Mark Carney, Poilievre warned against giving ground to U.S. negotiators unless Canada secures tariff-free access for Canadian lumber, steel, aluminum, and cars, alongside exemptions from “Buy America” rules on U.S. infrastructure projects. Tariff Act of 1930 on July 21 to threaten a 50 percent tariff on roughly $28 billion in Canadian exports, targeting areas such as auto counter-tariffs, dairy access, and provincial bans on U.S. liquor.
Provincial Premiers Divided Over U.S. Alcohol Boycott
At the center of the dispute is Prime Minister Carney’s push for provinces to restore U.S. alcohol sales to help secure a deal that avoids the threatened U.S. tariffs. Eight of Canada’s 10 provinces previously restricted or banned American alcohol in retaliation for earlier U.S. tariffs and rhetoric regarding Canadian sovereignty. Newfoundland and Labrador Premier Tony Wakeham confirmed that all premiers agreed during a Wednesday call with Carney to return U.S. products to store shelves, although not every provincial leader has publicly backed the move.
Manitoba Premier Wab Kinew stated that Carney strongly pressed premiers on the matter, noting that provincial leaders control liquor sales and procurement rules even though they lack a formal veto over the overall federal agreement. While Kinew indicated Manitoba may go along with Carney’s request as part of a Team Canada approach, he urged consumers to leave American products on the shelves. Ontario Premier Doug Ford, whose government-run LCBO sold nearly 1 billion Canadian dollars ($723 million) in U.S. products annually before pulling them, has not yet commented on the emerging deal. Meanwhile, Quebec Premier Christine Fréchette stated that Carney answered many of her questions but stopped short of endorsing the agreement while evaluating its economic impact.
Economic Leverage and Political Reactions
Kinew argued that Canada holds the upper hand in the current negotiations, asserting that U.S. leadership is vulnerable due to domestic cost-of-living issues and impending midterm elections. Citing Robert Armstrong’s “Trump Always Chickens Out” trade concept, Kinew maintained that Canada should not rush to offer additional concessions. Robert Bothwell, a professor emeritus of Canadian history and international relations at the University of Toronto, told reporters that Kinew’s criticism reflects a broader public sentiment in Canada regarding the U.S. administration.
Potential Next Steps
Depending on the outcome of face-to-face meetings in Washington, Canadian and U.S. negotiators could officially release the terms of the emerging trade agreement before Saturday’s tariff deadline. If the federal government successfully coordinates with provincial premiers to lift alcohol bans and adjust procurement preferences, the U.S. administration may permanently lift the threat of 50 percent import penalties. However, failure to resolve outstanding disputes over dairy quotas, automotive measures, and market access could prompt the U.S. to implement the postponed tariffs, intensifying economic pressures across multiple Canadian export sectors.