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Ottawa May End U.S. Alcohol Bans to Dodge the Tariffs — What It Means for You

  August 10, 2026 · 6 min read With nine days left before the United States' 50% tariff on hundreds of Canadian goods is set to kick in, Ottawa appears willing to give up one of its most visible retaliation tools: the provincial bans on American beer, wine, and spirits. According to CBC News reporting from federal negotiators, Canada is prepared to end those bans, lift its retaliatory tariff on U.S.-made vehicles, and adjust how it allocates dairy import quotas — all in exchange for Washington dropping the looming 50% levy and easing existing duties on steel and aluminum. Talks have not produced a signed deal. Both sides have agreed to meet daily through August 19, and Canadian officials have reportedly told their American counterparts that the deadline is a real cliff: once the tariffs land, there's little political appetite left in Canada to keep negotiating. Whether that urgency produces an agreement in time is still an open question. What it means for you: Even if this dea...
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Loonie Hits Yearly Low Against USD Ahead of Fed Meeting

 

The Canadian dollar fell to its lowest level against the US dollar in a year on Wednesday, as investors awaited the outcome of the Federal Reserve's monetary policy meeting. The loonie traded at 0.7876 USD, down 0.4% from Tuesday's close. The currency has lost more than 5% of its value since June, when it reached a six-year high of 0.8338 USD.

The Fed is widely expected to announce a tapering of its bond-buying program, which has been supporting the US economy during the pandemic. The central bank may also signal a faster pace of interest rate hikes, as inflation pressures mount. Higher US rates tend to boost the greenback and weigh on other currencies.

The Canadian dollar is also facing headwinds from domestic factors, such as the uncertainty over the outcome of the federal election, the slower pace of vaccination compared to other countries, and the weaker-than-expected economic growth in the second quarter. Analysts expect the Bank of Canada to maintain its accommodative stance until the recovery is more solid.

The loonie may find some support from rising oil prices, which are hovering near a three-year high. Canada is a major oil exporter and its currency tends to move in tandem with crude prices. However, the outlook for oil demand remains uncertain, as the delta variant of the coronavirus poses a risk to global growth.

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