Dairy farmers warn against concessions as U.S. tariff deadline looms

Canadian dairy farmers are warning against any concessions involving their sector as trade talks intensify with the United States ahead of President Donald Trump’s tariff deadline.

A new round of 50 per cent American tariffs on a range of Canadian goods is set to take effect on Aug. 19. Unlike most of Trump’s other tariffs, these would have no exemptions for goods that comply with the Canada-U.S.-Mexico agreement on trade.

The supply management system that protects Canadian dairy has been cited by the U.S. as a key irritant in trade negotiations and Trump has repeatedly complained about the level of U.S. dairy farmers’ access to Canada’s market.

Dairy Farmers of Canada says it’s urging the federal government not to offer any more concessions on dairy or supply management in talks with the United States.

“Our food sovereignty is not for sale; a bad deal is not worth the cost,” the organization said in a statement to The Canadian Press.

“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.”

Prime Minister Mark Carney said Thursday his government is “loyal” to the supply management system.

A source who has been briefed on the ongoing negotiations but is not authorized to speak publicly about them, said Ottawa has told provinces not to expect major changes to the supply management regime.

Canada could move to broaden American market access under existing terms, the source said.

The U.S. has long demanded direct access for its dairy sector to large Canadian retailers such as Walmart or Loblaw stores, similar to the way a European Union trade deal allows cheese companies limited access to some major Canadian companies.

The source said it’s not likely Canada would provide that direct access because the scale of American imports could overwhelm the supply management system and might violate Bill C-202, which limits the extent to which trade talks can change the system.

Other trade irritants flagged by the U.S. where American negotiators are pushing for concessions include the federal government’s “Buy Canadian” procurement policy, quotas on certain U.S. vehicles and provincial bans on sales of U.S. alcohol.

The source said provinces that still have alcohol sales restrictions in place are likely to keep them, while Ottawa has suggested they should not let go of that leverage until Canada obtains major gains in negotiations.

An annual document published by the Office of the United States Trade Representative in March said market access barriers imposed by provincial liquor control boards “greatly hamper” exports of U.S. wine, beer and spirits to Canada.

Several Canadian provinces pulled American booze from store shelves last year after Trump imposed tariffs. The document said the U.S. wants its alcohol products to “immediately and permanently” return to all markets.

The office of Quebec’s minister of finance said in a statement Friday that American products will stay off the province’s liquor store shelves until an agreement Quebec considers fair has been negotiated.

“The sale of alcohol falls exclusively under the Quebec government,” the spokesperson said in a French statement. “It’s Quebec, and only Quebec, that will make a decision.”

Canada has been pushing for relief for hard-hit areas, including the steel, auto and forestry sectors.

Canada-U.S. Trade Minister Dominic LeBlanc was scheduled to leave Washington Friday after meeting with U.S. trade representative Jamieson Greer, industry groups and various senators. He is set to return Monday.

Janice Charette, Canada’s chief trade negotiator, is remaining in Washington over the weekend.

Gabriel Brunet, a spokesperson for LeBlanc, said that as detailed trade discussions between the two countries continue, 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,” he said. 

CUSMA was negotiated during the first Trump administration to replace the North American Free Trade Agreement.

At the beginning of July, the Trump administration announced it was not extending CUSMA. That triggered annual rolling reviews that could last for up to a decade — at which point CUSMA would expire unless all three countries agreed to an extension.

This report by The Canadian Press was first published Aug. 7, 2026.

— With files from Dylan Robertson, Émilie Bergeron, Anja Karadeglija and Alessia Passafiume

By Catherine Morrison | Copyright 2026, The Canadian Press. All rights reserved.