US President Donald Trump has announced a three‑day pause on new tariffs targeting Canadian imports, stating that a trade deal is close to finalization.
The delayed tariffs would have imposed a 50% levy on an estimated $20 billion worth of Canadian goods from tomorrow morning, but Trump said the initiative was on hold pending final confirmation of trade documents.
The announcement came just under two hours before the scheduled levy, sparking relief among Canadian exporters and U.S. businesses worried about the economic impact.
In his social media post, Trump noted that the pause would allow the U.S. and Canada to “finalise a DEAL” and hinted that a renewed trade agreement could reopen the Keystone XL pipeline, a project that had stalled under both the Obama and Biden administrations.
Canadian officials welcomed the decision, warning that the tariffs would damage cross‑border commerce. Meanwhile, U.S. officials remained focused on securing concessions such as reduced auto tariffs, removal of Canadian bans on U.S. alcohol, and adjustments to dairy quotas.
Negotiators had previously debated lowering U.S. auto tariffs from 25% to 15%, but disagreement over which vehicles qualify—particularly those with high American content—has kept the deal from fully finalising.
Ontario Premier Doug Ford said he would lift the province’s alcohol ban only if a "fair deal" is struck. U.S. businesses voiced concerns that higher tariffs could disrupt supply chains and threaten jobs under the US‑Mexico‑Canada Trade Agreement.
The pause signals a potential turning point in US‑Canada trade relations, as both sides weigh the long‑term benefits of a new, mutually beneficial agreement.
