Trump Pauses 50% Tariffs on Canada for Three Days, Says US and Canada Have a Deal.
Washington:
U.S. President Donald J. Trump has announced a three-day pause on planned 50% tariffs on certain Canadian imports, saying the United States and Canada have reached a deal that is awaiting final documentation.
The tariffs had been scheduled to take effect at 12:01 a.m. Eastern Time on August 19, under proclamations issued by the Trump administration in July. The measures cover selected Canadian products, including certain alcoholic beverages, dairy-related goods, motor vehicles and other products.
In a statement, Trump said the tariffs had been paused because “Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” The announcement came after intensive negotiations between officials from the two countries as the tariff deadline approached.
The proposed tariffs are estimated to affect approximately $20 billion worth of Canadian goods. The temporary suspension is intended to provide additional time for Washington and Ottawa to finalize the terms of the emerging agreement and avoid an immediate escalation in bilateral trade tensions.
Keystone XL Pipeline Back in Focus
Trump also used the announcement to raise the possibility of reviving the controversial Keystone XL Pipeline, a major energy infrastructure project intended to transport Canadian crude oil to the United States.
Trump said the pipeline, which he described as having been “long ago killed” by former President Joe Biden, “may be awoken from the grave.”
The Keystone XL project was canceled after the Biden administration revoked its permit in 2021. The proposed pipeline had faced years of political and environmental controversy, including opposition from environmental groups and Indigenous communities.
Trump’s latest remarks suggest that the pipeline could once again become part of broader discussions over U.S.-Canada economic and energy relations, although no specific agreement concerning Keystone XL has been publicly detailed.
Canada-US Trade Talks Continue
Canadian Prime Minister Mark Carney has confirmed that significant progress has been made in negotiations with Washington, while indicating that important work remains before a final agreement can be completed.
The dispute has focused on several areas of trade, including Canadian treatment of U.S. dairy, alcoholic beverages and motor vehicles. The Trump administration has justified the proposed tariffs by accusing Canada of discriminatory or unequal treatment of American commerce.
The three-day pause therefore represents a temporary easing of tensions rather than a fully finalized trade agreement. The outcome of the ongoing negotiations will determine whether the threatened tariffs are permanently withdrawn, modified or ultimately imposed.
For now, Trump’s announcement gives both governments a limited window to complete the necessary documents and turn the reported preliminary agreement into a formal deal.
