Prime Minister Mark Carney may be approaching a trade settlement with President Donald Trump, but one of Washington’s demands cannot be delivered by Ottawa alone.
Quebec Premier Christine Fréchette is refusing to commit to putting American alcohol back on SDQ shelves. Fréchette said the Canada-US negotiations remain “far from over” and is seeking further assurances from Carney over Quebec’s dairy and forestry sectors before deciding how the province will respond.
“Information is missing before I can make the right decisions to ensure Quebecers are protected. I am awaiting clarifications from Mr. Carney,” Fréchette said in a social media post, according to the AP News.
Sponsored · Selkirk Copper Mines
The pushback comes as Canadian and US negotiators race to finish an agreement before Saturday midnight, August 22, when the Trump administration’s delayed 50% tariffs on roughly $20 billion of Canadian imports are scheduled to take effect.
Canadian trade minister Dominic LeBlanc and US Trade Representative Jamieson Greer were due to meet again Thursday following talks the previous day.
Carney briefed provincial premiers Wednesday and asked them to consider restoring US alcohol to provincial shelves if an agreement is completed, Nova Scotia Premier Tim Houston said.
Quebec controls most wine and spirits retail through the SAQ, meaning the federal government cannot simply order American products returned to its stores. Fréchette has made clear that Quebec intends to make that decision itself.
Sponsored · Altamira Gold Corp.
In a July 20 proclamation, the White House said Canadian provinces and territories had discriminated against US alcoholic beverages after removing them from stores beginning in March 2025. The administration said Canadian imports of American alcohol dropped about 81%, from roughly $718 million to $137 million, between March 2025 and February 2026 compared with the preceding 12-month period.
The Trump administration subsequently cited alcohol restrictions, Canadian dairy policies, and treatment of US vehicles in imposing the threatened Section 338 tariffs.
Eight of Canada’s 10 provinces continue to restrict or prohibit US alcohol, according to the AP News. Ontario, representing an especially large part of the market, saw its LCBO selling nearly $1 billion of American products annually before they were removed last year.
The prospective settlement could provide substantial tariff relief for major Canadian industries.
Reuters reported, citing a source familiar with negotiations, that Washington could lower the headline tariff on Canadian-built vehicles to 15% from 25%. Steel and aluminum tariffs could fall to 25% from 50%.
A steel quota may also be imposed, with one source placing the possible annual threshold at 4 million metric tons before the 50% tariff returns.
Agriculture remains another point of dispute. Trump has said US agricultural exports would receive tariff relief, while Ottawa has maintained that Canada’s supply-management system will be protected.
LeBlanc said Canada’s “agriculture sector will be well protected and we have maintained our tough line,” according to the Associated Press.
For Quebec, that assurance has not yet been enough. Fréchette is heading toward an October provincial election while weighing a federal trade settlement touching three politically sensitive areas for the province: dairy, forestry, and the boycott of US alcohol.
