After hosting a hastily arranged virtual huddle with his fellow first ministers yesterday afternoon to discuss U.S. President Donald Trump’s threat to impose a sweeping new 50 per cent tariff on hundreds of Canadian exports, Prime Minister Mark Carney is set to join provincial and territorial premiers as they wrap up their annual two-day summer meeting with a closed-door “gala” at Davlay-by-the-Sea on the north end of the Island. (7 p.m. AT)

As iPolitics’ own Barbara Patrocinio explains, the “latest escalation” in the ongoing cross-border trade standoff “puts the premiers under renewed pressure … with one provincial retaliation measure emerging as a growing obstacle in negotiations: the removal of American alcohol from liquor store shelves,” which, along with current restrictions on dairy products and motor vehicles, discriminates against the United States, according to American officials.

“The standoff shows an awkward constitutional reality for Carney,” she notes.

“While the federal government is responsible for negotiating international trade agreements, liquor distribution falls under provincial jurisdiction, leaving Ottawa unable to simply order provinces to reverse their policies. On their side, the United States has repeatedly said that the provincial alcohol restrictions are one of its trade irritants. American officials have also rejected Ottawa’s argument that the measures are solely provincial decisions.”

Speaking with reporters on the margins of the premiers’ meeting yesterday, British Columbia Premier David Eby “pushed back against suggestions from (Saskatchewan Premier Scott Moe) that keeping U.S. wine, spirits and beer off liquor store shelves is hindering sensitive trade negotiations,” the Toronto Star reports.

“’There is not a chance in hell that U.S. alcohol is going back on the shelf in British Columbia, and I’m proud of that,’ Eby told reporters as the Council of the Federation conference began Tuesday at a waterfront hotel. ‘The idea that after facing yet another attack on our economy from the president, that this would be the moment to capitulate, I think, would be the wrong approach,’ Eby added, noting (Ontario Premier Doug Ford) has long held the same position. ‘Doug and I are of similar mind on this issue. The one way to embolden a bully is to capitulate.’”

During a brief back-and-forth with reporters in Ottawa yesterday morning, Carney “agreed that it would be a mistake to put American wine, beer and spirits back on store shelves now,” the Star points out.

“The decision to change that, first and foremost, would be taken by the provinces themselves, each individually, and should only be taken, in my judgment, as part of an overall agreement, and that’s what we’ll work to accomplish,” he said.

Before making their way to the resort — which, as Parks Canada notes, was “once a summer home owned by a wealthy oil tycoon,” and is now a national historic site and event venue — the premiers are set to hold a closing press conference in Charlottetown this afternoon. (3:30 p.m. AT)

Meanwhile, Artificial Intelligence Minister Evan Solomon, whose portfolio also includes FedDev Ontario, teams up with Guelph-area Liberal MP Dominique O’Rourke to share the details of new federal support aimed at “helping businesses grow and innovate” throughout the region. (10:45 a.m.)

Moving west, Secretary of State (Rural Development) Buckley Belanger and International Trade Minister Maninder Sidhu unveil fresh support for the provincial agricultural sector during an afternoon appearance at the Ag in Motion trade show in Langham, Sask., which bills itself as the “largest outdoor farm expo in Western Canada.” (1:30 p.m. MDT)

Rounding out the roster, Industry Minister Mélanie Joly heads to London’s Chatham House to take part in what the advisory describes as a “hybrid discussion on Canada’s industrial strategy,” as well as “middle-power diplomacy,” with a virtual media availability to follow later today.

IN THE CHAMBER

Both the House of Commons and the Senate have shut down for the summer, with regular parliamentary proceedings set to resume in September.

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Committee highlights courtesy of our friends at iPoliticsINTEL.