(OTTAWA, CANADA) – Canadian dairy farmers are pushing back against any further trade concessions as talks with the United States continue ahead of a new tariff deadline. The warning comes as American tariffs on a range of Canadian goods are set to rise sharply on August 19, 2026.
A fresh round of 50% tariffs on Canadian products is due to take effect on that date. Unlike most other tariffs imposed by the United States, these measures will not include exemptions for goods that meet the rules of the Canada United States Mexico trade agreement.
The supply management system that regulates Canadian dairy has long been a point of friction in trade talks. United States officials have repeatedly raised the level of access American dairy farmers have to the Canadian market.
Dairy Farmers of Canada said it is asking the federal government not to offer any more ground on dairy or supply management. “Our food sovereignty is not for sale; a bad deal is not worth the cost,” the group said in a statement.
“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,” the organisation said.
Prime Minister Mark Carney said on Thursday that his government remains “loyal” to the supply management system.
Other issues flagged by United States negotiators include the federal government’s “Buy Canadian” procurement policy, quotas on certain American vehicles and provincial bans on sales of American alcohol.
A document published by the Office of the United States Trade Representative in March said market access barriers imposed by provincial liquor boards “greatly hamper” exports of American wine, beer and spirits to Canada. Several provinces removed American alcohol from store shelves last year after the United States imposed tariffs. The document said the United States wants its alcohol products to return to all Canadian markets immediately and permanently.
The office of Quebec’s finance minister said on Friday that American products will remain off the province’s liquor store shelves until an agreement Quebec considers fair has been reached. “The sale of alcohol falls exclusively under the Quebec government,” a spokesperson said. “It’s Quebec, and only Quebec, that will make a decision.”
Canada United States Trade Minister Dominic LeBlanc left Washington on Friday after meeting with industry groups and various senators. He is set to return on Monday.
Janice Charette, Canada’s chief trade negotiator, is staying in Washington over the weekend.
Gabriel Brunet, a spokesperson for LeBlanc, said detailed trade discussions between the two countries continue. He said 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,” Brunet said.