Trump pauses 50 percent tariffs on Canadian imports for three days, claiming U.S. and Canada have a ‘DEAL’
President Donald Trump paused a planned 50% tariff on Canadian imports for three days, saying the U.S. and Canada have reached a preliminary agreement.
He announced the delay Tuesday evening, less than two hours before the tariffs were scheduled to take effect.
Trump delays tariffs as U.S. and Canada work toward a deal
On Truth Social, Trump said he paused the tariffs because the two countries had reached a preliminary agreement.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period,” Trump declared. “Based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!”
The proposed tariffs, if imposed, would affect $20 billion worth of Canadian products or roughly 5% of Canada’s exports to the United States.
Wine, hockey sticks and cement would face tariffs, while critical minerals, fish, potash and energy products would remain exempt, according to The New York Post
Canada had threatened to retaliate with tariffs of its own and the move would have only intensified tensions between the two countries that exchanged about $880 billion in goods and services last year.
Trump also floated the possibility of reviving the Keystone XL pipeline in the same post.
“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” he wrote.
If executed, the pipeline could carry up to 830,000 barrels of crude oil each day from Alberta to Nebraska.
U.S. and Canada clash over 2 issues before finalizing the trade deal
Negotiators discussed cutting U.S. tariffs on Canadian autos from 25% to 15%, but they could not agree on which vehicles would qualify for the lower rate. (via Reuters). The U.S. wants the lower tariff to apply to vehicles containing a high percentage of American-made content.
Another dispute centers on American alcohol, as most Canadian provinces imposed restrictions on U.S. liquor sales after earlier tariff disputes and Washington wants those restrictions lifted, according to the BBC.
However, this issue could be tricky for Mark Carney because Canadian provinces control liquor sales, not the federal government.
Ontario Premier Doug Ford said he would consider lifting the restrictions if Canada receives a “fair deal.”
U.S. Trade Representative Jamieson Greer’s office stated on X that the proposed agreement will include “comprehensive market access for all American goods, economic security commitments, digital trade alignment.”
For now, negotiators have three days to turn Trump’s preliminary agreement into a finalized deal.