Trump hits pause on Canada tariffs threat, and hints at revival of Keystone XL oil pipeline project

President Donald Trump has temporarily halted a planned 50% tariff on Canadian goods, pausing the threat for three days based on the agreement reached with Canadian officials. The tariffs, which were set to affect $20 billion worth of exports, would have targeted Canadian products such as wine and hockey sticks. Canada's Prime Minister, Mark Carney, acknowledged "substantial progress" in negotiations but emphasized that more work was needed.

Meanwhile, Trump hinted at the potential revival of the Keystone XL oil pipeline project in a social media post, stating that the controversial pipeline "may be awoken from the grave." The pipeline, which was halted in 2021, aimed to transport oil from Canada's western tar sands to US refiners. This development comes amid a strained relationship between the two nations, characterized by escalating tariffs and disputes over immigration and drug trafficking.

The last round of tariffs, introduced in February, was in response to Canada's perceived lack of progress in curbing illegal immigration and drug trafficking. In recent months, both countries have been engaged in "intense and delicate" negotiations, with Canada maintaining that its border protection measures are robust and that the majority of illegal activities originate from elsewhere.