U.S. Threatens New 50% Tariff on Canadian Goods as Trade Talks Intensify

On July 20, the U.S. administration announced it intends to impose a new 50% tariff on a broad range of Canadian goods, effective within 30 days without exemptions. The U.S. cites provincial bans on American liquor, Canada's supply-managed dairy system, and vehicle import quotas as the reason. Prime Minister Mark Carney called it the latest in a string of unilateral U.S. trade actions and said Canada has made detailed proposals to modernize CUSMA and is ready to intensify talks. Premiers meeting at the Council of the Federation in Charlottetown backed the federal response and pushed for closer consultation as negotiations continue.

Another tariff layer on top of the CUSMA annual review cycle is a second live variable for any business sourcing from or shipping to the U.S. Pricing and supply chain plans built around a stable CUSMA now need a backup scenario.

Nine Premiers Agree to Open Up Direct-to-Consumer Alcohol Sales Across Provinces

At the same Council of the Federation meeting, nine premiers announced they're removing major barriers to direct-to-consumer sales of beer, wine, and spirits shipped between provinces. Those shipments were previously governed by a patchwork of item-specific agreements or blocked outright. The move is part of a broader push to cut internal trade friction while U.S. tariff threats loom.

Canadian alcohol producers selling online have been boxed in by provincial shipping rules for years. This opens a real path to a national direct-to-consumer market, the kind of internal trade fix e-commerce operators in other categories have been asking for.

Canadian Media Coalition Asks Ottawa to Tax Foreign Ad Platforms as Local Newsrooms Keep Shrinking

A coalition called Canadian Media Means Business, backed by Glassroom, Seekers Media, Narcity, and Gonez Media, is preparing a pre-budget submission asking Ottawa to close a Section 19 tax rule that lets ad spend placed with foreign platforms like Google and Meta get a tax advantage over spend placed with Canadian media. The proposal would redirect that revenue into a refundable tax credit for businesses advertising with Canadian media, weighted 75% for small businesses. The coalition puts Canadian ad spend leaving the country at $14 billion a year. The submission is landing the same week Rogers cut 230 jobs and closed six radio stations, and Corus cut 43 more.

If this credit moves forward, it changes the math on where ad budgets are most efficiently spent, especially for small and mid-sized businesses that would see the largest credit. Worth tracking ahead of the fall budget.

Retail Sales Climbed 1.0% in May, StatCan Estimate Points to More Growth in June

Statistics Canada reported retail sales rose 1.0% to $73.7 billion in May, with gains across all nine subsectors, led by gasoline stations and fuel vendors. Core retail sales, which strip out gas stations and motor vehicle dealers, were up 0.9%. StatCan's advance estimate points to a further 0.4% increase in June.

Two straight months of broad-based growth is a different signal than the flat retail numbers operators have been navigating earlier this year. Worth watching whether it holds up against the tariff news landing the same week.