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, signaling that the two countries are close to reaching a trade deal. The 50% tariffs, scheduled to take effect tomorrow, were put on hold as Canada and the U.S. worked to finalize a deal. The announcement came shortly before the tariffs were set to be implemented, affecting nearly $20 billion worth of Canadian imports.

Recent negotiations between senior trade representatives for both nations in Washington have shown progress, but there are still important matters to resolve. The deal could include concessions from Canada on agriculture and manufacturing, as well as a reduction in US tariffs on Canada. If successful, the agreement might also pave the way for reviving the Keystone XL pipeline, a project previously blocked by both the Obama and Biden administrations.

The final trade deal would provide comprehensive market access for American goods, ensure economic security, and align digital trade standards. Canadian dairy farmers have welcomed the extension of the deadline, as they feared the new tariffs would harm their sector.