Trump postpones 50% tariffs on Canadian imports after last-minute deal

President Donald Trump said on Tuesday that the United States would delay the 50% tariffs slated for $20 billion of Canadian imports for three days, after the two countries reached a last-minute agreement less than two hours before the measures were to take effect. The pause, announced on his Truth Social platform, is intended to allow finalization of documents and further negotiations.

"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!"

If the tariffs had begun at 12:01 a.m. Wednesday, they would have applied to a range of products, from hockey sticks to medical supplies. Canada had warned it would retaliate with its own levies, potentially escalating a trade dispute involving $880 billion in bilateral trade last year.

A White House proclamation noted that Canada had indicated a willingness to remove measures the Trump administration considers discriminatory against U.S. alcohol, dairy and motor-vehicle exports, though Canadian officials did not immediately confirm the details. Prime Minister Mark Carney said substantial progress had been made but that important work remained, and confirmed Canada’s acceptance of the three-day delay while talks continue.

Both nations have strong economic ties—nearly 72% of Canada’s goods exports went to the United States last year—making a tariff escalation risky for U.S. importers and consumers ahead of the November midterm elections. Trade lawyer Ryan Majerus, a former U.S. trade official, said neither side wants the tariffs to take effect and that there is a strong push for an “off-ramp.”

Candace Laing, president and CEO of the Canadian Chamber of Commerce, said the short-term delay offers some relief but falls short of the certainty a signed interim agreement would provide, urging negotiators to reach a definitive deal quickly.

The tariffs were threatened under Section 338 of the Tariff Act of 1930, a provision that allows the president to impose up to 50% duties on imports from countries deemed discriminatory, without a prior investigation. The measure has never been used before and is being leveraged as the United States renegotiates the US-Mexico-Canada Agreement.