Trump Pauses 50% Canada Tariffs After Last Minute Deal

US President Donald Trump has paused plans to impose new 50% tariffs on Canadian imports after announcing a last minute agreement with Canada. The tariffs, which were due to take effect on Wednesday, would have affected around $20 billion worth of Canadian goods, including vehicles, dairy products, alcohol and other consumer items.

Trump said the tariffs would be suspended for three days while the two countries finalise the details of the agreement. Canadian Prime Minister Mark Carney confirmed that “substantial progress” had been made but warned that important work remained. The dispute centres on several trade issues, including Canada’s restrictions on US dairy and alcohol products and rules affecting American businesses. The proposed deal is also expected to address wider economic and digital-trade issues.

Trump also suggested that the Keystone XL oil pipeline could potentially be revived as part of the agreement, although no formal commitment has been announced. The temporary pause prevents an immediate escalation in the already strained US Canada trading relationship, but the tariffs could still come into force if both sides fail to complete the agreement before the three day deadline.

The latest development gives Washington and Ottawa a short window to turn the preliminary agreement into a final trade deal and avoid another major confrontation between the two close economic partners.