Trump pauses tariffs on Canadian imports

U.S. President Donald Trump temporarily halted a set of 50% tariffs on Canadian imports on Tuesday night, following a deal reached between the two nations. Canadian Prime Minister Mark Carney confirmed that substantial progress had been made, though further work remained to be done. Trump confirmed the truce on his Truth Social platform, stating that the decision was based on Canada and the U.S. having a deal, pending finalization of documents.

The two leaders had spoken earlier in the day, marking their second conversation this week amid weeks of intense negotiations. Following the talks, Carney stated that Canada was focused on building a stronger, more independent, and more competitive economy at home. The deal is expected to include comprehensive market access for all American goods, commitments to economic security, and alignment in digital trade, among other provisions.

The U.S. Trade Representative, Jamie Greer, outlined the deal in a proclamation on the White House website, confirming that Canada had committed to addressing U.S. concerns related to duties on dairy products, alcoholic beverages, and motor vehicles. Specific details of the agreement remain undisclosed, as neither the U.S. nor Canadian governments confirmed the contents of the agreement.

The dispute over existing U.S. auto tariffs had been a significant hurdle, with two industry sources familiar with the talks revealing that these tariffs would have impacted approximately $20 billion worth of imports, regardless of whether Canadian goods qualified for preferential treatment under the US-Mexico-Canada trade agreement.

Trump also expressed optimism about the potential resurrection of the Keystone XL pipeline, which was cancelled by former President Joe Biden in 2021 due to opposition from indigenous and environmental groups.