U.S. Ambassador Suggests Tariff Deal with Canada: “Steel for Booze”

Recent discussions between U.S. Ambassador to Canada Pete Hoekstra and Canadian mould makers have revealed a potential pathway to easing escalating trade tensions: a tariff deal informally dubbed “steel for booze.” This comes after the imposition of increased tariffs on steel and aluminum crossing the U.S.-Canada border, sparking concern among Canadian manufacturers.

Meetings with Industry Leaders

Canadian mould makers met with Ambassador Hoekstra in Windsor, Ontario, on April 22, 2026, following a series of tariff hikes. The meeting was arranged after industry representatives, including Jonathon Azzopardi, president of Laval Tool & Mould Ltd., spoke before a House of Commons industry standing committee about the impact of the tariffs. A U.S. Embassy spokesperson confirmed the meeting with local officials took place.

The “Steel for Booze” Proposal

During the meeting, Hoekstra reportedly suggested a potential trade arrangement where the U.S. Could consider easing tariffs on Canadian steel and aluminum in exchange for concessions on Canadian tariffs related to other products, leading to the informal moniker “steel for booze.” Azzopardi noted the speed with which the U.S. Arranged the meeting, emphasizing its importance. He stated, “The U.S. Did not waste any time in setting up this meeting. I think it’s important that we note that they set up the meeting.”

Broader Trade Concerns and CUSMA

The tariff disputes extend beyond steel and aluminum, raising concerns about the future of the Canada-United States-Mexico Agreement (CUSMA). Ambassador Hoekstra has suggested that Canada’s implementation of counter-tariffs on U.S. Products is jeopardizing the agreement. In March 2026, Ottawa imposed a 25 percent tariff on $29.8 billion worth of U.S. Goods, including items covered under CUSMA, such as orange juice, motorcycles, and appliances, in response to tariffs imposed by the U.S.

Escalating Tariffs and U.S. Actions

Currently, the U.S. Has imposed a 35 percent tariff on non-CUSMA Canadian goods, a 50 percent levy on Canadian steel, aluminum, and copper, and has threatened further tariffs on Canadian pharmaceuticals. These actions have prompted discussions about potential unilateral tariff removals to improve negotiations and support Canadian businesses.

Ongoing Negotiations and Future Outlook

While the “steel for booze” proposal represents a potential avenue for de-escalation, the broader trade relationship remains complex. The future of CUSMA hinges on resolving the tariff disputes and addressing concerns about retaliatory measures. Continued dialogue and negotiation will be crucial to maintaining a stable trade environment between the two countries.