Trump pauses planned 50% tariffs on Canadian goods for three days

On Tuesday, US President Donald Trump halted the planned implementation of 50-percent tariffs on certain Canadian goods for a three-day period. This pause in tariffs came after negotiations between the two countries came to a head, with a deal reportedly reached between US and Canadian officials. The temporary reprieve from the new duties was contingent upon the finalization of relevant documents.

Trump made this announcement via his Truth Social platform, following a series of urgent talks he had with Canadian Prime Minister Mark Carney earlier that day. The announcement also referenced the potential revival of the Keystone XL Pipeline, a project previously halted under his predecessor Joe Biden. In previous statements, Trump has advocated for the revival of the pipeline, which has been opposed by environmental activists.

The tariffs, which were originally announced last month, were aimed at products such as wine, hockey sticks, and cement, affecting around 5.5 percent of Canada's total exports to the United States, valued at approximately $20 billion. Notably, Oxford Economics estimates that these duties would have a relatively modest impact on Canada's economy, but could significantly affect central Canada's manufacturing sector.

Canadian negotiators had been in Washington pushing for a deal to avoid the new tariffs and secure relief for sectors hit by Trump's sector-specific duties, including auto, steel, lumber, and aluminum industries. Canadian officials reportedly offered concessions, such as pressuring provinces to reintroduce US alcohol and wine products onto their shelves.