From Taco Tuesday to Fitting Friday: Trump puts Canada tariffs on ice for 72 hours

Canada has avoided a 50% tariff on approximately $20 billion worth of Canadian goods, imposed by President Trump, for a period of 72 hours. The tariff was set to take effect, but President Trump announced a reprieve, declaring on Truth Social that the United States and Canada had reached an agreement. Canada's Prime Minister, Mark Carney, acknowledged substantial progress but noted that there is still work to be done, indicating that claims of a trade deal are premature.

The 72-hour delay in the tariff has reignited internet memes that reference Trump's habit of threatening economic and military Armageddon before negotiating, known as "TACO" (Trump Always Chickens Out). Social media users are now joking about another "TACO Tuesday," with Canada providing the salsa.

The primary issue at hand is Canada's discriminatory trade practices towards the United States, particularly on American dairy, alcohol, and vehicles. Canada has resisted demands to open its markets to American terms and has retaliated through its own tariffs and boycotts. Ties between the two nations have never been worse.

President Trump's proposed tariffs would cover products ranging from hockey sticks and electronics to plastics and building materials, although these affected goods previously enjoyed protection under the US-Mexico-Canada trade framework. The threatened tariffs would only impact around 5% of Canada's exports to the US, but their political and psychological impact would be much larger.

A potential deal could include greater Canadian market access for American products, commitments on economic security and cooperation on digital trade, and the possible revival of the Keystone XL pipeline. However, the main sticking point is automobiles: Washington wants tariff relief for Canadian vehicles linked to more American-made components, while Canada prefers broader North American rules that include Mexican and Canadian content as well.

For now, President Trump has temporarily put the tariff on hold for 72 hours, giving Canada and the US until Friday to turn a TACO Tuesday into a fitting Friday. Beyond this deadline, the possibility of the tariffs returning becomes a real concern.