The United States has presented its clearest demands yet to Canada for preserving free trade, as outlined by US Trade Representative Jamieson Greer in a Congressional hearing on Wednesday, December 18, 2025. Key issues include opening up Canada’s dairy market to US farmers, revising online streaming regulations that favor Canadian content, and ending provincial bans on US liquor sales imposed in retaliation to tariffs.
With US-Canada trade talks still on hold, American officials have emphasized the necessity of addressing these points as part of a broader review of the United States-Mexico-Canada Agreement (USMCA). Both Canada and Mexico are keen to extend the pact, but President Donald Trump has mused about withdrawing, making the US demands critical for the agreement’s future. Greer told Congress that the USMCA has been “successful to a certain degree” but insisted that changes are essential for its continuation.
An enduring sore spot for the US is Canada’s dairy supply-management system, which strictly controls production quotas and imports to support local farmers, often resulting in higher prices for consumers. The US accuses Canada of imposing “extraordinary tariffs” on dairy imports, up to 400%, and seeks greater market access under the USMCA. Despite Canada being a top importer of US dairy, buying $1.1 billion worth in 2024, American officials argue that the current framework unfairly restricts competition. Additionally, the US has raised concerns about Canada dumping nonfat milk solids in international markets, undercutting US producers.
Another point of contention is the Online Streaming Act, passed in 2023 under former Prime Minister Justin Trudeau, which requires American media companies like Netflix and Spotify to financially support Canadian content and promote it on their platforms. The US claims this legislation “discriminates against US tech and media firms” and calls for its revision. Greer also highlighted the Online News Act, a separate law that has led tech giants like Meta and Google to pay news outlets for content, with Meta blocking news access in Canada in protest.
In response to Trump’s sweeping tariffs on Canadian goods, most provinces have banned the sale of US liquor, causing significant declines in sales for American producers. The US demands that these bans be lifted if the USMCA is to be extended. Ontario, Canada’s largest province, has been defiant, with Premier Doug Ford stating that US liquor will remain off shelves until a tariff deal or renegotiated trade agreement is in place. Only Alberta and Saskatchewan have continued selling US alcohol, highlighting regional disparities.
Greer’s testimony also mentioned other irritants, including “discriminatory procurement measures” in Ontario, Quebec, and British Columbia, and “complicated customs registration” for US exports. A specific dispute involves Alberta’s treatment of Montana electricity providers, with the US alleging that Alberta’s grid operator unfairly blocks access to the market. Alberta has denied these claims, noting that reduced imports from Montana are due to market conditions, not discrimination.
The USMCA review comes at a tense time in US-Canada relations, with Trump’s tariff policies escalating trade tensions. Canada has stated that it will restart talks when “Americans are ready,” but key issues like dairy supply management may be non-negotiable for Ottawa. The resolution of these demands will shape the future of North American trade, impacting industries from agriculture to technology.
This summary synthesizes information from BBC News and Yahoo News Canada, both reporting on December 18, 2025, confirming that the event was first covered within the last 24 hours.
