US President Trump: I have paused 50% tariffs against Canada
Following overnight negotiations with Canadian Prime Minister Mark Carney, US President Donald Trump announced on Wednesday, “I have paused 50% tariffs against Canada for a three-day period.”
US President Donald Trump has temporarily halted 50% tariffs against Canada for a three-day period, following overnight negotiations with Canadian Prime Minister Mark Carney. The deal allows the Keystone XL pipeline to potentially resume operations. This pause in tariffs is set to take effect just hours before the US imposes the levies on additional Canadian imports, such as hockey sticks and wine.
The Canadian Dollar (CAD) has shown signs of recovery following Trump's statement, with the USD/CAD pair dropping 0.15% on the day to 1.3875. Tariffs are customs duties applied to specific imports, with the purpose of making domestic producers more competitive. While some economists argue that tariffs are essential for protecting industries and addressing trade imbalances, others view them as a harmful tool that could lead to higher prices and a trade war.
Trump has previously used tariffs to bolster the US economy and support American producers, targeting Mexico, China, and Canada, which together account for 42% of US imports.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
