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…
President Donald Trump has postponed the implementation of a proposed 50% tariff on Canadian goods by three days, ultimately averting what would have been a significant economic blow to the North American nation. This temporary reprieve came after the two countries reached a deal just hours before the tariffs were set to take effect, affecting approximately $20 billion worth of Canadian exports.
Canadian Prime Minister Mark Carney acknowledged "substantial progress" towards a trade agreement but emphasized that additional work was necessary. The Canadian government expressed a commitment to fostering a more independent and competitive economy at home.
In an unrelated development, Trump hinted at the potential revival of the Keystone XL oil pipeline project, a contentious issue that has long divided US and Canadian interests. The pipeline, proposed in 2008, aims to transport oil from Canada's western tar sands to US refiners. However, the project was halted in 2021 following President Joe Biden's revocation of a crucial permit for the US segment.
The pipeline has been a flashpoint in US-Canada relations, sparking opposition from landowners, Native American tribes, and environmentalists over concerns about spills and ecological damage.
The agreement between the United States and Canada follows a tumultuous year marked by escalating tensions. In February 2025, the Trump administration imposed a 25% tariff on Canadian goods, alleging inadequate efforts to curb illegal immigration and drug trafficking. Canada retaliated with a reciprocal levy, dismissing the US claims as "unwarranted and unreasonable."
Earlier in 2026, tensions flared again when the White House announced the more severe 50% tariff, alleging discrimination against US-produced cars, alcohol, and dairy products. The proposed tariffs were met with significant concern from Canadian business owners, who feared substantial financial devastation and untenable export costs, despite the ongoing USMCA deal shielding certain goods from import taxes.
Written by urgent.news from The Guardian's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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