Trump pauses Canada tariffs as tentative trade deal is negotiated

President Donald Trump announced a three-day postponement of the 50% tariffs on roughly $20 billion of Canadian goods that were slated to begin at 12:01 a.m. ET on Wednesday. The pause was described as a result of a pending agreement between the United States and Canada, though details of the deal were not disclosed.

The tariffs, announced last month, target products such as wine, hockey sticks and other items that the administration said face discriminatory treatment in Canada. In a post on Truth Social, Trump said the delay was "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!"

The president hinted that the agreement could involve reviving the Keystone XL oil pipeline, a project halted in 2021. An AI-generated image posted by Trump showed him pulling a pipeline labeled "KEYSTONE" from the ground.

Canadian Prime Minister Mark Carney responded that "substantial progress has been made, although there is important work still to be done" and later said the two sides are "moving towards an agreement that reinforces Canadian advantage, including by securing the best terms in each of Canada's most important strategic sectors and providing greater certainty about our future trading relationship."

When asked about the specifics, Trump said Canada had made multiple concessions, including lowering its retaliatory tariffs on U.S. goods, and that the deal would be "very fair for both" parties. He added that tariffs affecting U.S. farmers would be eliminated and that the United States would reduce some duties on Canadian automobiles, though he did not provide exact figures. The president emphasized that the agreement remains subject to the completion of required documentation.

A presidential proclamation released Tuesday night indicated that Canada would lower or remove its trade barriers on U.S. products as part of the forthcoming arrangement.