Trump pauses 50% Canada tariffs for three days as deal nears

U.S. President Donald Trump has paused a planned 50 per cent tariff increase on Canadian goods for three days, saying Washington and Ottawa had reached a preliminary agreement.

The announcement came late on Tuesday, 18 August, hours before the tariffs were due to take effect, following a phone call between Trump and Canadian Prime Minister Mark Carney.

Trump said the pause was based on the two countries having “a deal”, although he stressed that documents still needed to be finalised.

Carney's office said in a statement that "substantial progress has been made with the U.S., althought thre is important work still to be done."  

Keystone XL could return

Trump also suggested the long-disputed Keystone XL pipeline could be revived, saying the project “may be awoken from the grave”.

The pipeline was cancelled by former President Joe Biden in 2021 following years of opposition from environmental groups and Indigenous communities.

Talks continue

The tariff dispute has put pressure on businesses across the highly integrated U.S.-Canadian economy. Existing U.S. tariffs on Canadian cars were reportedly among the final sticking points in negotiations.

The three-day pause gives both governments a short window to finalise an agreement and prevent the threatened tariffs from taking effect.

Read more about Canada:

• Canada's Carney races to avert Trump’s 50% tariffs as trade talks stall
• Canada’s anti-terror rules disrupt Muslim charities’ aid to Syria, Yemen
• U.S. plans to close five overseas diplomatic missions including in Canada, Japan and Indonesia

Tags

News Politics Trump USA Canada trade deal U.S. tariffs