Trump Pauses 50% Tariffs on Canadian Goods, Signaling a Deal
U.S. President Donald Trump announced that he will delay a 50% tariff on a wide array of Canadian goods for three days, less than two hours before the levy was due to go into effect. The pause comes as the U.S. and Canada are said to be near a final trade deal.
The announcement was made via Trump’s social‑media platform, noting that the 50% tariff on nearly $20gbn of Canadian imports had been scheduled to hit the market tomorrow morning. Trump’s statement emphasized the notion that the “deal” is within reach before the documents are finalized.
Tensions have built since Trump returned to office in January, when he launched a wave of new tariffs across several sectors. Canada had already fought against U.S. trade measures on steel, aluminium, auto parts and lumber, while the U.S. required Canada to lift a ban on U.S. alcohol sales and make concessions on dairy quotas.
Amid the negotiations, Trump hinted that a settled trade agreement could also revive the Keystone XL pipeline—a project blocked under the Obama and Biden administrations. Environmentalists and indigenous groups have long opposed the pipeline, but Trump has repeatedly called for its revival, promising 830,000 barrels of oil a day would flow from Alberta to the United States.
Business leaders on both sides welcomed the temporary relief. The U.S. Chamber of Commerce warned that higher tariffs would damage both economies, increase costs for families, and jeopardize 13 million jobs dependent on the United States‑Mexico‑Canada Trade Agreement.
In the final hours before the deadline, negotiators explored reducing the U.S. auto tariff from 25% to 15% for Canadian cars that meet U.S. content thresholds, though agreement on eligible vehicles remains unresolved. Canadian provincial premiers will also need to approve the lift of the liquor ban, which is controlled at the provincial level.
The pause offers a brief window for the two countries to iron out these issues, potentially restoring normal trade flows and averting a prolonged dispute over what trade researchers call the “closest” pro‑trade relationship in North America.
