Trump pauses new 50% tariffs on Canada for three days, saying deal close

U.S. President Donald Trump announced he is delaying the implementation of 50% tariffs on Canadian goods for three days, as Canada and the United States work towards a trade deal. The tariffs, set to take effect the following morning, would have impacted nearly $20 billion worth of Canadian imports. The deal's progress was described as substantial by Canadian Prime Minister Mark Carney in a letter posted on social media.

The trade deal is expected to include market access for American goods, economic security commitments, and digital trade alignment. It would also restore the Keystone XL pipeline, a project previously blocked by both the Obama and Biden administrations. US Trade Representative Jamie Yingst Greer's office stated that the deal would include provisions to protect American workers and markets.

The extension comes as a relief to Canadian negotiators and businesses, who feared the tariffs would negatively impact both nations. Tensions between the two countries have escalated since Trump took office in January 2021, as he imposed a series of tariffs on Canadian imports, including wine, dairy, cement, clothing, and hockey equipment.

Canada sought to remove or reduce these tariffs, while the U.S. demanded concessions, such as the removal of retaliatory tariffs on American autos and adjustments to Canadian dairy quotas to allow greater access for U.S. cheese producers. The final deadline for the trade deal passed without agreement on several key issues, including the eligibility of vehicles for tariff reductions and the reinstatement of the sale of American alcohol in provinces that had banned it in response to the tariffs.