Trump delays 50% tariffs on Canada for three days
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Trump delays 50% tariffs on Canada for three days

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Summary

President Donald Trump announced a three-day pause on planned 50% tariffs against Canada while negotiations continue, affecting roughly $20 billion in bilateral trade.

President Donald Trump announced on social media that a three-day suspension of the 50% tariffs slated for Canada would begin at midnight, pending finalization of a deal between the two countries. The pause applies to duties that would have covered about $20 billion in U.S. imports from Canada, including hockey equipment, building materials, alcoholic beverages and certain apparel.

The move follows intensive talks between the White House and Canadian officials, described by Prime Minister Mark Carney’s office as “very delicate and intense.” Carney’s office did not immediately comment on the specifics of the agreement.

U.S. Trade Representative Jamieson Greer previously linked the threatened tariffs to Canadian retaliatory measures, noting that Canada and China are the only two nations that have taken such actions against the United States. The tariffs would have been the first use of Section 338 of the Tariff Act of 1930, which permits duties up to 50% for perceived discrimination.

The U.S. Chamber of Commerce warned that without a deal, higher tariffs could raise costs for American families and disrupt supply chains. Canadian negotiators have sought to eliminate the Section 338 tariffs and reduce Section 232 duties on steel, aluminum and other industrial products.

“The policy basis for the duties is related to measures that Canada took against the United States,” Greer said last week.

“The introduction of higher tariffs would damage both economies, drive up costs for U.S. families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on the North American trade pact,” the Chamber said.

The temporary suspension does not clarify whether the tariff rates will be lowered after the pause. Discussions on automobile duties remain ongoing, with U.S. officials reportedly unwilling to reduce the existing 25% rate below 15%.

Source

NBC News

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