With just over a week to go before a looming United States tariff deadline, Canada's government is signalling a new willingness to offer concessions in exchange for tariff relief. According to industry sources who spoke to CBC News, Ottawa is now prepared to move on several fronts as negotiators prepare to return to Washington this week.
The concessions under consideration include lifting retaliatory tariffs on United States autos, making some changes on dairy, and ending provincial bans on American alcohol sales. The shift marks a notable change in tone from a government that had previously responded to US pressure largely through countermeasures of its own.
Not all of the proposed moves are within Ottawa's power to deliver. Canada cannot force the provinces to restock American alcohol, and the idea is deeply unpopular in Quebec. Quebec's premier is one of several pledging to continue a ban, a stance hardened after several American alcohol companies moved some of their manufacturing to the province.
Conservative leader Pierre Poilievre argued that the time for giving in to US trade demands is over, saying the Prime Minister has so far had nothing to show for the approach. He framed the government's strategy as concession after concession, insisting there should be no more unilateral concessions before Canada even reaches the bargaining table.
The negotiations have intensified in recent days, with both sides saying they will be in touch every day until the deadline. Officials described it as a very critical time in the process, with high stakes for an economy deeply intertwined with its southern neighbour and little room for error as the clock runs down.
The scale of what is at risk is significant. About 70 percent of what is produced in Canada is exported to the United States, and nearly two million Canadians work in manufacturing. Small businesses are anxiously watching the talks, and some are rushing to ship their goods south of the border before the deadline arrives, wary of the threat that new tariffs pose to their livelihoods.