Trump Delays 50% Tariffs on Canadian Goods to Allow Trade Deal Talks
US President Donald Trump announced on Truth Social that he would pause the 50 % tariff schedule on Canadian imports for a three‑day period, giving Washington and Ottawa time to close a trade deal. The tariffs, scheduled to take effect tomorrow, would have covered nearly $20 bn (C$28 bn) of Canadian goods, including wine, dairy, cement, clothing and hockey equipment.
The pause comes after negotiations over automotive, alcohol and dairy sectors have stalled. Canada has been pushing for U.S. tariffs on autos and other key sectors to be lowered or eliminated, while the U.S. seeks concessions such as the removal of a provincial ban on U.S. liquor sales and adjustments to Canadian dairy quotas. Negotiations have intensified since the U.S. threatened a new levy on August 19.
Trump’s social media post also hinted that a final trade deal could revive the controversial Keystone XL pipeline—a project that would link Alberta to the U.S. and was blocked by the Obama and Biden administrations. He wrote, “The great Keystone XL Pipeline...may be awoken from the grave!”
The temporary halt is welcome news for Canadian negotiators and for businesses on both sides of the border who fear the tariffs would damage trade flows. The two countries have been at an impasse for months, with the U.S. imposing existing tariffs on Canadian steel, aluminium, autos and lumber.
Negotiators were working late into the day before the deadline, reportedly discussing a reduction of U.S. auto tariffs from 25 % to 15 %—though disagreement over which vehicles qualify remains. Ontario Premier Doug Ford also said he was open to lifting the liquor ban only if a “fair deal” is reached.
The U.S. Chamber of Commerce urged a swift resolution, warning that higher tariffs would damage both economies, harm supply chains and risk 13 million American jobs dependent on the U.S.-Mexico‑Canada Trade Agreement.
