In brief
Donald Trump announced a three‑day pause on a 50% tariff that would have hit nearly $20 billion of Canadian goods. The move comes as U.S. and Canada edge closer to a new trade agreement that could also revive the Keystone XL pipeline. The tariff pause has been welcomed by businesses on both sides, but key disputes over auto duties, dairy quotas and a U.S. liquor ban remain unresolved.
US President Donald Trump announced that he would temporarily halt a 50% tariff on a wide range of Canadian goods for three days. The tariff, which was scheduled to kick in tomorrow morning, would have affected almost $20 billion of Canadian imports, including wine, dairy, cement, clothing and hockey equipment.
The pause comes as negotiations between the U.S. and Canada near a final deal. Both sides have been at an impasse over auto duties, dairy quotas, and a ban on American liquor sales in most Canadian provinces.
Trump’s post on Truth Social noted that a confirmed trade agreement could also revive the Keystone XL pipeline, a project that was blocked by previous administrations and opposed by environmentalists and Indigenous groups.
- 50% tariff pause applies to $20 billion of Canadian goods.
- Negotiations include auto duty reductions from 25% to 15%.
- Canada requested removal of retaliatory tariffs on U.S. cars and adjustment of dairy quotas.
- U.S. seeks to lift Canadian ban on American liquor sales.
- Keystone XL pipeline revival highlighted as a potential benefit of the deal.
The decision has been welcomed by businesses on both sides of the border, but the debate over the final trade terms continues. Canada’s Prime Minister Mark Carney and the U.S. Chamber of Commerce have urged both governments to finalize an agreement before further economic harm occurs.
Posted 13 minutes ago – 2026‑08‑19 02:41:36 UTC
