Trump Pauses 50% Tariffs on Canadian Goods for Three Days

President Donald Trump paused 50% tariffs on Canadian goods on August 19, hours before a deadline.

Canadian Prime Minister Mark Carney stated that important work remains to be done before a deal is reached. Trump suggested the Keystone XL Pipeline could be revived as part of a final trade deal. The tariffs were scheduled to take effect on August 19, with a 50% levy on nearly $20 billion of Canadian imports.

Trump announced the three-day pause on Truth Social, stating that Canada and the U.S.A. have a DEAL! subject to finalization of documents. The pause is set to last until the end of day, August 21. The two leaders spoke twice this week, including on the afternoon of August 18. Trade negotiators have been engaged in intense talks since July.

US Trade Representative Jamieson Greer's office stated the deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment and other provisions. The deal also aims to address US concerns on dairy, alcohol, and vehicle tariffs. The White House accused Canada last month of unreasonable, unequal, and discriminatory actions by imposing tariffs or import restrictions on certain American goods.

The new tariffs would have applied to products compliant with the United States-Mexico-Canada Agreement (USMCA), but included exemptions for oil, gas, and potash. The 50% duties would have affected about $20 billion of imports from Canada, ranging from hockey sticks to tongue depressors. In 2025, nearly 72% of Canada's goods exports went to the United States. Canada had threatened to retaliate with its own levies. Trump invoked Section 338 of the U.S. Tariff Act of 1930 to impose the tariffs.