Trump hits pause on Canada tariffs threat, and hints at revival of Keystone XL oil pipeline project
US president delays 50% tariffs by three days, and says contentious oil project ‘may be awoken from the grave’ Canada has temporarily avoided a bruising 50% US tariff, reaching a Tuesday-evening agreement with Trump administration officials hours before a hike that would have affected $20bn worth of goods was set to take effect. Donald Trump posted late on Tuesday on social media that he had…
In a surprising turn of events, US President Donald Trump has delayed the imposition of 50% tariffs on Canadian goods by three days. The contentious tariffs, which would have affected $20 billion worth of products, were set to take effect on Tuesday. The deal reached between the two nations comes after hours of negotiations, with both sides expressing optimism about progress towards a trade agreement.
Although Trump announced that the controversial Keystone XL pipeline project "may be awoken from the grave," he did not provide further details. The pipeline, which was halted in 2021, was a significant point of contention between the US and Canada. The 11th-hour agreement also comes amid a year of strained relations between the two countries, with Trump's administration imposing a 25% tariff on Canada in February 2025 and Canada reciprocating with a similar levy.
Tensions have been high due to disagreements over immigration, drug trafficking, and border security. Despite the recent developments, both nations have a long history of strong trade ties, with the value of goods exchanged between them reaching $909 billion in 2024.
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