President Donald Trump announced a three-day pause on new 50% tariffs against Canadian goods, which were scheduled to begin early Wednesday. The President cited a deal reached between the U.S. and Canada.
The tariffs, targeting a range of products from hockey sticks to wine, were set to take effect at 12:01 a.m. ET on Wednesday. President Trump confirmed on Wednesday that he had a productive conversation with Canadian Prime Minister Mark Carney on Tuesday night, stating they had reached an agreement to temporarily avert the tariffs on various Canadian goods.
President Trump asserted that a key part of the deal would eliminate Canadian tariffs on American agricultural goods. He noted that American farmers had been paying significant tariffs into Canada, which would now be reduced to zero.
However, Canada’s latest statement from Prime Minister Carney indicated that while substantial progress has been made, important work remains to be completed. Carney emphasized Canada’s focus on building a stronger, more independent, and competitive domestic economy.
When questioned about whether the deal would also reduce tariffs on Canadian steel and aluminum, President Trump responded that the administration was examining that aspect. The U.S. trade representative’s office provided further insight into a potential final agreement, stating it would include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and provisions to protect American workers and Canadian partners.
President Trump also suggested the deal might revive the Keystone XL Pipeline project, which was canceled in 2021. The tariffs were initially announced by President Trump last month through a series of executive orders, in response to Canadian policies he considered discriminatory against U.S. exports. The White House previously stated that these measures aimed to offset the burden on U.S. commerce from Canada’s discriminatory treatment and level the playing field for American exports such as cars, alcohol, and dairy.
Prime Minister Carney had criticized the U.S. tariffs, stating that Canada had merely matched those measures and that the trade dispute had increased costs for families, particularly in the U.S. He affirmed Canada’s readiness to engage intensively to resolve outstanding issues for the mutual benefit of both nations’ citizens.
The tariffs were intended to be imposed under Section 338 of the Tariff Act of 1930, a provision that allows the president to enact levies up to 50% on countries found to have discriminated against the U.S. This provision has no prior judicial precedent, according to an economist at UBS.
