PM Carney points to trade irritants with U.S.: ‘Those are violations of our trade deal’

OTTAWA -- As top U.S. trade officials revive talk of Canadian trade irritants — such as provincial booze bans — Prime Minister Mark Carney says Canada has its own issues with the Americans, which he wants to see addressed.

“Look, you know what’s an irritant? A 50 per cent tariff on steel, 50 per cent tariff on aluminum, 25 per cent tariff on automobiles, all the tariffs on forest products,” Carney said Thursday, at a housing announcement in Ottawa.

• Live updates: PM Carney says U.S. trade irritants ‘right there in front of us.’

“Those are more than irritants,” he said. “Those are violations of our trade deal.” Carney pointing to these specific U.S. trade actions against Canada comes amid ramped-up gripes by U.S. President Donald Trump’s team that several provinces continue to prohibit the sale of American alcohol on liquor store shelves, and questions about whether that may be a barrier to successful trade talks.

These bans on U.S.-made booze are also a contravention of the two countries’ trade agreement, in the eyes of the Americans. But when asked Thursday if he intends to lean on provincial leaders — namely Ontario Premier Doug Ford — to ease off, the prime minister pushed back.

“Surprise, surprise, the premier of Ontario is influential with the LCBO, okay, but he’s the client,” Carney said. “He’s also the duly elected premier of Ontario. He’s got a majority, and he’s taking a view which, you know, by most indications, is supported by the vast majority of the population.”

“What we want to do is make progress as the whole,” he added. “These issues, issues such as decisions on which alcohol to put on the shelves, we can make progress very quickly on that, with progress in other areas.”

Carney continued, saying he is looking to negotiate something that is “mutually agreeable,” and that there “will be adjustments,” but that “when we make progress,” it’ll be up to the provinces with such policies in place to make a call.

During an interview with CNN on Thursday morning, Ford was asked to respond to U.S. Commerce Secretary Howard Lutnick, recently calling the ongoing boycott of U.S. alcohol “insulting and disrespectful to America.”

“I guess what is disrespectful is we never started this tariff war and I don’t believe the American people did. It was Secretary Lutnick followed by President Trump as well that attacked our joint economies,” Ford said Thursday.

Ford has previously said that Ontario will not lift its ban on U.S. alcohol at provincial liquor stores until all new tariffs on Canadian goods are removed.

PM Carney slaps down ‘entry fee’ talk

And, amid reporting from a few major outlets suggesting the Americans are angling for some form of so-called Canadian “entry fee” — or immediate concession — to begin trade talks, Carney says he’s at a loss where that suggestion may be coming from.

“I don’t know where the talk of a ‘entry fee’ is from, certainly not coming from me. It’s not language I’ve ever used, and it’s not language I’ve ever heard from the president of the United States,” Carney said. “It’s a negotiation,” he added. “These things have their own rhythm, and they also have what’s happening above the surface and what’s happening below the surface, and we’ll see in the fullness of time.”

“Our work is… to be prepared on all of the issues to provide our perspective,” Carney said. “We’re also ready to wait. If that’s what has to happen.”

The trilateral trade deal between Canada, the U.S. and Mexico, known as CUSMA, is imminently up for review by July 1. At that point, officials can decide to renew the deal for a 16-year period, or to agree to an annual review process.

On Parliament Hill on Thursday, Conservative Leader Pierre Poilievre noted Carney’s comments dismissing any suggestion of an “entry fee,” and when asked if he thinks Canada should put U.S. wine, beer and liquor back on store shelves, Poilievre said “no.”

Poilievre said that Carney has already “squandered all of our leverage” and he doesn’t think Canada should “squander any more.”

“I don’t think we need to spend three or four days debating whether we should drink bourbon or not. I think we should discuss whether 2.6 million Canadians are going to have their jobs, and the way to get those jobs secured is to get a tariff-free trade deal with the U.S.,” he said.

Americans want concessions

The Americans have long made clear — dating back to last December and reiterated earlier this month — that they will be looking for Canada to make concessions in the CUSMA review process.

U.S. Trade Representative Jamieson Greer, speaking to the U.S. House Ways and Means Committee on Wednesday, repeated a position he’s laid out before, that the U.S. doesn’t “want to rubber-stamp it,” without addressing specific issues.

Beyond booze, another issue the Americans have said they’ll be pushing Canadian officials on, is expanding access to this country’s supply managed dairy market.

Canada allows a limited amount of U.S. dairy to enter tariff-free under CUSMA, but Greer doesn’t think that’s enough.

Canada-U.S. Trade Minister Dominic LeBlanc has already said publicly that dairy supply management concessions are off the table, a position Carney reiterated Thursday.

Greer has also cited Canada’s Online Streaming Act, which he’s said “discriminates against U.S. tech and media firms,” and the Online News Act, as irritants. Both Justin Trudeau-era laws bring streaming and digital news platforms under Canadian cultural and broadcasting rules.

“We’ve been very clear on supply management, on our cultural rights,” Carney said, going on to state Canada will be “defending” those elements.