Trump pauses new tariffs on Canada and says countries close to a deal

US President Donald Trump has postponed imposing new tariffs on Canadian goods for three days, as the two nations work towards finalizing a trade deal. Trump announced the delay via social media, stating that the 50% tariffs, scheduled to take effect the following morning, have been paused pending the completion of document finalization.

The two countries have been locked in negotiations for several weeks, with trade officials engaging in intense discussions since July. Trump and Canadian Prime Minister Mark Carney have had multiple conversations, aiming to resolve issues such as US tariffs on autos and Canada's ban on American liquor sales. Trump also hinted at the potential revival of the Keystone XL pipeline, which was halted by previous administrations.

The extension of the trade deal is viewed positively by Canadian negotiators and businesses, as the tariffs could have negatively impacted both countries. Canada has been seeking a deal that would allow the US to reduce or eliminate tariffs on key sectors, including wine, dairy, cement, clothing, and hockey equipment. On the other hand, the US has requested concessions such as the removal of retaliatory tariffs on American autos and adjustments to Canada's dairy quotas to accommodate more US cheese exports.

Negotiators are currently discussing a deal that would lower US tariffs on Canadian autos from 25% to 15%, although they remain divided on which vehicles would qualify for tariff reductions. Canada's Prime Minister Carney will need support from provincial leaders to reintroduce the sale of US alcohol, as liquor sales are a provincial responsibility.