Trump’s tariff pause doesn’t bring trade certainty, industry groups say

U.S. President Donald Trump's temporary suspension of 50% tariffs against Canada has provided "relief" for businesses, but industry groups say it doesn't bring enough certainty to the trade relationship. Canada's chief negotiator Mark Carney announced that although substantial progress was made in trade talks, "important work still needs to be done."

Canadian businesses are seeking stability, with Canada Chamber of Commerce president Candice Lang stating that the uncertainty is not ideal but any relief is welcome. Dan Kelly of the Canadian Federation of Independent Business welcomed the tariff removal as a step in the right direction but emphasized the need for progress on existing sectoral tariffs like steel, aluminum, lumber, and autos.

The Distilled Spirits Council of the United States highlighted the provincial boycott on American liquor, which has caused a 70% drop in exports. The odds of reaching a comprehensive trade deal before the U.S. midterm elections increased following Trump's announcement. Scotiabank economist Derek Holt said such a deal would positively impact Canadian economic growth and have minimal effect on U.S. growth, potentially easing consumer worries.

The Canadian dollar appreciated slightly against the U.S. dollar following Trump's announcement. Trump also revived discussions about reviving the Keystone XL oil pipeline, which was shelved under the previous administration.