Trump Pauses Canada Tariffs for Three Days Citing Tentative Deal

US President Donald Trump announced a three-day pause on 50 percent tariffs against Canadian imports, citing a tentative trade deal.

The announcement came less than two hours before the tariffs were scheduled to take effect at 12:01 a.m. today, August 19. Trump posted on Truth Social that the pause was based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL! Canadian Prime Minister Mark Carney confirmed the US agreed to postpone the tariffs until the end of day, August 21.

Carney stated that substantial progress has been made, although there is important work still to be done. The tariffs would have applied to approximately $20 billion worth of Canadian goods, targeting products such as hockey sticks, wine, and cement. Trump also hinted the deal might revive the Keystone XL oil pipeline, which he said may be awoken from the grave!

The Keystone XL pipeline project was quashed by President Joe Biden in 2021 and had been opposed by former President Barack Obama. The US Trade Representative's office stated the deal would include comprehensive market access for all American goods, economic security commitments, digital trade alignment. Trump's proclamation on the White House website indicated Canada committed to addressing US concerns regarding duties on dairy products, alcoholic beverages, and motor vehicles.

Canadian and US officials have been meeting daily for the past week, and Carney and Trump spoke by phone on Tuesday, their second conversation this week. The tariffs were initially unveiled last month in response to alleged Canadian trade discrimination in the motor vehicle, alcohol, and dairy industries, imposed under Section 338 of the Tariff Act of 1930.