President Donald Trump on Tuesday announced he would be pausing his planned 50% tariffs on Canadian goods just hours before they were meant to take effect, avoiding a trade war between the United States and its northern neighbor.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump posted on Truth Social.
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Trump’s deadline for the tariffs to go into effect was Wednesday at 12:01 a.m., but after Washington and Ottawa met for talks, the two countries reached a deal, Trump said, as both sought to prevent another escalation in a trade dispute that has strained relations between the longtime allies.
Canadian Prime Minister Mark Carney and Trump had discussed negotiations over the past two days, but Carney told reporters on Monday that talks should not be conducted in public.
The tariffs would have affected a wide range of Canadian imports from the U.S., amounting to roughly $20 billion in products.
Trump also touted the deal as a gateway to more opportunities with Canada, specifically noting the Keystone XL pipeline that saw its cross-border permit canceled by former President Joe Biden.
“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” the president said.
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Trump had announced the tariffs in July, invoking a Great Depression-era provision that allows a president to impose duties against countries found to discriminate against U.S. commerce. The president accused Canada of unfairly restricting American products, pointing to barriers involving dairy, alcohol, and automobiles.
The duties would have applied to certain products that otherwise receive preferential treatment under the United States-Mexico-Canada Agreement. The roughly $20 billion in targeted goods represented about 5% of Canada’s annual shipments to the U.S.
