Trump pauses 50% tariffs on Canada, claims trade deal is close

U.S. President Donald Trump announced on Tuesday evening that he had delayed the implementation of 50% tariffs on Canada for three days, asserting that a trade agreement with the nation was nearing completion. The decision came shortly before the tariffs were set to commence. In a Truth.Social post, Trump stated, "I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!"

The announcement also revealed that the Keystone XL pipeline, previously halted due to environmental considerations, might soon be revived. The proposal for the 1,200-mile oil pipeline aimed to transport oil from Alberta, Canada, to Nebraska. The project was abandoned after widespread opposition related to climate change and land rights disputes.

Trump's Tuesday remarks followed discussions with Canadian Prime Minister Mark Carney, aimed at preventing another trade conflict in North America. In July, Trump had utilized Section 338 of the Tariff Act of 1930 to propose tariffs up to 50% on specific Canadian goods, citing Canadian policies as discriminatory towards American auto and dairy exports.

Additionally, Trump criticized Canadian bans on American alcohol, which were a response to prior U.S. tariff measures.