Carney says lifting U.S. liquor ban depends on Trump ending assault on steel, autos, lumber

ground government minister deutsche mark Carney said th that the provincial censor on U.S. Liquor could end quickly if the Americans bend on the tariffs that have pummeled key sectors in this country like steel, autos and forest products.

Carney said the provinces have barred American beer, wine and spirits because U.S. President Donald Trump launched a trade war that has crippled certain industries, and there's no public appetite for a policy change until the White House delivers some relief.

"We can make progress very quickly on that with progress in other areas," Carney told reporters at a news conference in Ottawa on housing.

Carney says U.S. Tariffs violate CUSMA as Americans bemoan provincial booze bans

"We're looking to negotiate something mutually agreeable, and there will be adjustments there when we make progress on that," he said, speaking of the Section 232 tariffs on Canadian industrial products that have led to plant and mill closures.

"I'm still confident that we will make progress. Those judgments will be made by the provinces."

Carney bristled at a question about U.S. Trade Representative Jamieson Greer's threat Wednesday to levy retaliatory measures against Canada if the liquor boycott continues.

While testifying before Congress, Greer said: "My sense is there may have to be an enforcement action to deal with this issue on wine and spirits in Canada." He did not offer any specifics.

"You know what's an irritant? A 50 per cent tariff on steel and aluminum, 25 per cent on automobiles, all of the tariffs on forest products. Those are more than irritants. Those are violations of our trade deal, OK?" Carney said.

Carney said those steep levies have hurt the provinces and they are in no mood to cut the Americans any slack by restocking their booze in government-run stores.

Alberta and Saskatchewan started restocking U.S. Alcohol last year, but the ban remains in place everywhere else including Ontario where the LCBO, the world's largest purchaser of liquor, remains steadfast in keeping those products off the shelves. The ban has been devastating for American liquor interests.

"I’d do it in a heartbeat folks, but when he’s destroying our auto sector, putting in jeopardy tens of thousands of jobs," there will be no movement to bring those products back, Ford said of Trump at a conference in Toronto.

Carney said Ford, as "the client" given his government's control over the LCBO, is within his rights to keep the boycott in place.

But the prime minister needled Ford for running ads in the U.S. Last fall that Ottawa maintains derailed progress on a possible tariff relief deal.

Carney has said he warned Ford against running ads that featured former president Ronald Reagan pillorying tariffs. Those ads angered Trump and he walked away from the negotiating table.

"How did it work? Did he listen?" Carney asked of Ford. "I was right, by the way."

Greer isn't the only one who has raised the liquor ban.

U.S. Commerce Secretary Howard Lutnick, a frequent Canada critic, told Congress on Wednesday that it's "outrageous that Canada will not put U.S. Spirits on the shelf," while making no mention of his department's tariffs that initially spurred the retaliation.

Lutnick's remarks prompted a rebuke from New Hampshire Sen. Jeanne Shaheen.

"They won’t do it because of the insults from this president, and comments like yours," she said.

Senior reporter

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