With U.S.–Canada trade talks still paused, American officials have laid out their clearest demands yet for keeping free trade between the two countries.
U.S. trade officials want Canada to open its dairy market further, change laws affecting online streaming and news, and allow American liquor back on store shelves. These demands were shared by U.S. Trade Representative Jamieson Greer during a hearing before Congress on Wednesday.
The comments came as part of a review of the Canada–U.S.–Mexico Agreement (USMCA), the North American free trade deal. Canada and Mexico want the agreement renewed, but U.S. President Donald Trump has suggested the U.S. could leave it. Greer told lawmakers the deal has worked “to a certain degree,” but changes are needed for it to continue.
Here is a breakdown of what the U.S. wants from Canada.
Open Canada’s dairy market
The U.S. has long criticized Canada’s dairy supply-management system, which controls how much dairy is produced and limits imports to protect Canadian farmers.
Trump has complained that Canada charges very high tariffs on dairy imports, sometimes as high as 400 per cent. Canada says those tariffs only apply if import limits are exceeded — something that has never happened.
Canada imported about $1.1 billion worth of U.S. dairy products in 2024, making it one of the biggest buyers. Still, the U.S. argues that Canada’s system unfairly blocks American farmers from selling more dairy.
Greer also accused Canada of exporting some dairy products to global markets at very low prices, which the U.S. says hurts competition.
Prime Minister Mark Carney said in August that dairy supply management is not open for negotiation. However, during Trump’s first term, Canada did agree to give U.S. dairy producers more access under the USMCA.
Change streaming and news laws
Another major issue is Canada’s Online Streaming Act, passed in 2023 under former prime minister Justin Trudeau.
The law requires companies like Netflix and Spotify to support and promote Canadian content. It also allows Canada’s broadcast regulator to fine companies that do not follow the rules.
Greer told Congress the law discriminates against U.S. tech and media companies and should be changed, though he did not say how.
The U.S. also wants changes to Canada’s Online News Act, which forces companies like Google and Meta to pay news organizations for content. Meta responded by blocking news links on Facebook and Instagram in Canada.
Put U.S. liquor back on shelves
After the U.S. imposed new tariffs on Canadian goods, most provinces removed American alcohol from government-run liquor stores.
U.S. liquor producers say the boycott has hurt their sales. Greer said returning U.S. alcohol to Canadian shelves is a key demand if the USMCA is extended.
Most provinces still ban U.S. liquor, except Alberta and Saskatchewan. Ontario Premier Doug Ford has said the ban will stay until tariffs are lifted or a new trade deal is reached.
Fix Alberta–Montana power dispute
Greer also raised concerns about trade issues beyond dairy and media. These include provincial purchasing rules and complicated customs processes for U.S. exporters.
Another issue involves electricity trade between Alberta and Montana. The U.S. claims Alberta’s power grid operator blocks Montana electricity producers from accessing the Alberta market.
Alberta denies this, saying U.S. companies are treated the same as Canadian ones. Alberta officials say the issue likely exists because the province has imported less power from Montana in recent years.
Despite the dispute, Montana still sells more electricity to Alberta than Alberta sells to Montana, according to a 2024 report. Alberta officials say they remain committed to fair trade with the U.S.
