Topline
President Donald Trump on Tuesday said he was delaying his plan to impose 50% tariffs on a range of Canadian products after the two countries reached a last-minute agreement just hours before the latest levies were set to go into effect.
Trump’s 50% tariffs on a broad set of Canadian goods were set to go into effect on Wednesday.
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Key Facts
In a post on Truth Social late on Tuesday, Trump announced he had “paused the 50% Tariffs against Canada” for a three-day period.
Trump said the brief pause was to allow the “finalization of documents” for a deal both countries have reached.
The president’s post didn’t specify any details about the deal but noted that the Keystone XL Pipeline, which runs from Nebraska to Canada’s Alberta province, “may be awoken from the grave.”
In a statement on X, the official handle for the U.S. Trade Representative, Jamieson Greer, noted the deal will include “comprehensive market access for all American goods, economic security commitments, digital trade alignment,” and other provisions to protect U.S. workers.
What Have Canadian Officials Said About The Deal?
In an official statement, Canadian Prime Minister Mark Carney sounded more cautious about the state of the deal, saying: “Substantial progress has been made, although there is important work still to be done.” Echoing Trump, he noted that the U.S. 50% tariffs have been postponed until the end of day on August 21. His statement said the Canadian government in the past few weeks has: “engaged in intensive discussions with the United States to address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families.” Carney noted that while negotiations with the U.S. continue, his country is also focused on “building a stronger, more independent, and more competitive economy at home.”
What Do We Know About The Tariffs?
Last month, Trump signed an order imposing 50% tariffs on a range of Canadian goods, including wine, dairy, cement, furniture, and ice hockey gear. To implement the tariffs, Trump used Section 338 of the Tariff Act of 1930, an obscure Great Depression-era law that allows the president to impose tariffs up to 50% on countries deemed to be discriminating against U.S. goods. The White House accused Canada of discriminating against various U.S. made products, including cars, alcohol and dairy goods.
further reading
Carney Says Canada Is Open To Talks After Trump Imposes New 50% Tariffs (Forbes)