Trump Pauses Canada Tariffs 3 Days as Trade Deal Nears

US President Donald Trump suspended sweeping 50% tariffs on around $20 billion worth of Canadian imports for three days on 19 August, citing substantial progress toward a trade agreement with Ottawa. The pause came less than two hours before the levies were set to take effect.

What goods were affected

The proposed tariffs would have covered a wide range of Canadian exports, including wine, dairy products, cement, clothing and hockey equipment — on top of existing US duties already applied to Canadian steel, aluminium, automobiles and lumber. "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 announced on social media.

Deal details emerging

Canadian Prime Minister Mark Carney confirmed progress, writing in a letter posted on X that "substantial progress has been made, although there is important work still to be done." Trade negotiators on both sides have held intensive talks since July, when Trump threatened the new tariffs with an August 19 deadline. The US Trade Representative said a deal would include comprehensive market access, economic security commitments and digital trade rules.

Keystone XL pipeline floated

Trump also raised the prospect of reviving the Keystone XL oil pipeline, which would carry 830,000 barrels per day from Alberta's oil sands to the US Midwest — a project blocked by both the Obama and Biden administrations. Businesses on both sides of the border had warned the new tariffs would be mutually damaging.