Trump puts 50% Canada tariffs on hold for three days as trade talks race to a deal
President Donald Trump has delayed 50% tariffs on Canadian imports for three days, buying the two neighbours a narrow window to finish a deal that
President Donald Trump has delayed 50% tariffs on Canadian imports for three days, buying the two neighbours a narrow window to finish a deal that both sides say is close. The pause came just before the duties were due to hit and spared a fresh blow to exporters shipping a broad range of goods into the U.S.
The last-minute move matters far beyond Washington and Ottawa. Canadian businesses had been bracing for steep new costs on products including wine, hockey sticks and other imports covered by the planned duties. It was a close call. Very close.
Talks continue in Washington
U.S. and Canadian officials were in Washington on Wednesday as negotiations pushed into overtime. Canada’s minister for U.S. trade joined U.S. Trade Representative Jamieson Greer for talks, while both governments signaled confidence that they can still reach a final agreement.
Trump said on social media that he was pausing the tariffs for a three-day period. Speaking to reporters later at the site of a new White House helipad, he called the emerging deal “very fair” and said it was good for both countries.
“Our farmers are going to be thrilled,” he said.
What may be in the deal
Trump hinted the package could include changes on several long-running trade irritants. He suggested the U.S. might alter tariffs on Canadian autos and lower duties on Canadian steel and aluminum. He also raised the possibility of reviving Keystone XL, the oil pipeline project from Alberta to Nebraska that was cancelled in 2021.
Trump announced last month that the new import taxes would cover about $20 billion worth of goods. The tariffs were set to take effect after midnight before the pause was announced.
Businesses have warned that even the threat of the duties has already hit planning and pricing. The clock is still ticking.
What happens next
The three-day reprieve gives negotiators a short runway to close the gap. U.S. trade officials said key work remains, even as the two sides project optimism. If they fail to land a final deal in time, the tariffs could snap back into place almost immediately.
For now, the dispute has shifted from the edge of a trade fight to a race against time. The next update may come fast.
