US says Canada must drop tariffs to avoid 50% US duties

Canada must scrap its retaliatory measures on US goods to avoid new 50% tariffs on a fresh basket of Canadian-made products by August 19, US Trade Representative Jamieson Greer said on Friday. Greer pointed to provincial bans on American alcohol sales, dairy protectionism, and procurement rules as issues that have to be resolved. "Any potential resolution has to include all of these, or a pathway forward for them," he said.

The two sides have held intensive talks in Washington. Prime Minister Mark Carney said Canada wants broader relief from all US sector-specific tariffs on steel, aluminum, auto and lumber, not just the latest threat. "We have real negotiations, constructive negotiations on multiple issues," Carney said, but reiterated Canada could retaliate. Quebec and British Columbia premiers signalled conditional openness to discuss dairy quotas and lumber, while Carney has already removed most retaliatory tariffs imposed by his predecessor.