President Donald Trump said late Tuesday that the United States and Canada have reached a tentative agreement, pausing 50 percent tariffs on Canadian goods for three days. The duties were set to take effect Wednesday morning.
A deal announced hours before the deadline
'I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!' Trump wrote on Truth Social.
The tariffs would have applied to roughly $20 billion worth of Canadian goods. The list included wine, hockey sticks, liquor, building materials, and certain types of clothing. The White House first announced the duties in July, saying it wanted to hold Canada accountable for what it called discrimination against American cars, alcohol, and dairy products.
Keystone XL 'awoken from the grave'?
Trump also revived talk of the Keystone XL pipeline. The project, which would carry oil from Canada to the United States, was canceled under former President Joe Biden. 'The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!' Trump wrote.
The pipeline has been a flashpoint for years. Supporters say it would strengthen energy security. Opponents say it threatens the environment and indigenous lands.
Carney urges caution
Canadian Prime Minister Mark Carney welcomed the pause but kept expectations in check. He said 'substantial progress' had been made toward a trade deal, but more work was needed before documents were finalized.
Officials from both countries had been in intense and delicate talks for days, Carney told reporters on Monday. Markets had braced for the tariffs, which economists warned could push up prices for consumers on both sides of the border.
The three-day pause gives negotiators a short window to turn the tentative agreement into a signed deal. If the talks collapse, the 50 percent duties could return quickly.