Canada must avoid concessions in U.S. trade talks, dairy farmers warn

Posted August 7, 2026 4:39 pm

2 min read

1:19 ‘We’ll see’ if Canada, U.S. get a ‘win-win’ deal before Trump’s double tariff August deadline: Carney

Speaking to reporters in Saguenay, Que., on Thursday, Prime Minister Mark Carney said Canada is seeking a comprehensive trade agreement with the United States that covers strategic sectors, including aluminum. He said, "we'll see" whether the two countries will reach an agreement by the Aug. 19 deadline U.S. President Donald Trump set for implementing his second round of tariffs on Canada.

Canadian dairy farmers are warning against any concessions involving their sector as trade talks intensify with the United States ahead of President Donald Trump’s tariff deadline.

A new round of 50 per cent tariffs on a range of Canadian goods is set to take effect on Aug. 19. Unlike most of Trump’s other tariffs, these would have no exemptions for goods that comply with the Canada-U.S.-Mexico agreement on trade.

The supply management system that protects Canadian dairy has been cited by the U.S. as a key irritant in trade negotiations and Trump has repeatedly complained about the level of U.S. dairy farmers’ access to Canada’s market.

Dairy Farmers of Canada says it’s urging the federal government not to offer any more concessions on dairy or supply management in talks with the United States.

“Our food sovereignty is not for sale; a bad deal is not worth the cost,” the organization said in a statement to The Canadian Press.

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“Canada has already made several concessions in recent months to advance CUSMA review discussions with the U.S. — only to be met each time with fresh demands. It is difficult to see how more concessions would produce a different result.”

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Prime Minister Mark Carney said Thursday his government is “loyal” to the supply management system.

2:18 Quebecers defiant amid latest Trump tariff threat

Other trade irritants flagged by the U.S., where American negotiators are pushing for concessions, include the federal government’s “Buy Canadian” procurement policy, quotas on certain U.S. vehicles and provincial bans on sales of U.S. alcohol.

An annual document published by the Office of the United States Trade Representative in March said market access barriers imposed by provincial liquor control boards “greatly hamper” exports of U.S. wine, beer and spirits to Canada.

Several Canadian provinces pulled American booze from shelves last year after Trump imposed tariffs. The document said the U.S. wants its alcohol products to “immediately and permanently” return to all markets.

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The office of Quebec’s minister of finance said in a statement Friday that American products will stay off the province’s liquor store shelves until an agreement Quebec considers fair has been negotiated.

“The sale of alcohol falls exclusively under the Quebec government,” the spokesperson said in a French statement. “It’s Quebec, and only Quebec, that will make a decision.”

Canada-U.S. Trade Minister Dominic LeBlanc is leaving Washington Friday after meeting with industry groups and various senators, and is set to return Monday.

Janice Charette, Canada’s chief trade negotiator, is remaining in Washington over the weekend.

Gabriel Brunet, a spokesperson for LeBlanc, said that as detailed trade discussions between the two countries continue, the government “will not comment on specifics.”

“Canada’s objective remains to reach a comprehensive deal that addresses sectoral tariffs and benefits Canadian workers, farmers and businesses,” he said.

— With files from Émilie Bergeron and Alessia Passafiume

© 2026 The Canadian Press