U.S. President Donald Trump announced a three-day pause on new 50% tariffs on certain Canadian goods that were scheduled to take effect Wednesday.
The last-minute reprieve follows ‘intense’ talks with Mark Carney to avert 50% levies on billions of dollars in goods
The heavy duties which would have affected various Canadian goods just ahead of a midnight deadline were suspended following intense last-minute negotiations.
The US president wrote on Truth Social late on Tuesday that he had postponed the 50 per cent tariffs, which were set to kick in on Wednesday, “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL”.
The framework of the pending deal involves Canada committing to address U.S. grievances regarding market access, including automotive policies, dairy quotas, and the removal of retaliatory bans on American alcohol sales.
In his announcement on Truth Social, Trump also suggested that the final resolution could potentially pave the way to revive the controversial Keystone XL pipeline project.
The US president wrote on Truth Social late on Tuesday that he had postponed the 50 per cent tariffs, which were set to kick in on Wednesday, “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL”.
An hour later, Canadian Prime Minister Mark Carney confirmed that “substantial progress” has been made through ongoing, intensive discussions, though important administrative and documentation work remains before the deal is completely finalized.
Carney said, “Over the last number of weeks, Canada has engaged in intensive discussions with the US to address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers, and families.”
“Canada has expressed a commitment to remove the discrimination,” the White House said in a statement late on Tuesday. “Because of the status of these negotiations, the public interests favor suspending for a period of 3 days.”
US trade representative Jamieson Greer said: “The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions that will continue to protect our market and American workers, along with our Canadian partners.”
As reported by the Financial Times,Trump’s latest threat of 50 per cent levies sparked weeks of crunch talks in which Canada offered targeted concessions and pushed for the US to lift existing levies on industries including cars, steel and lumber.
Potential failure posed a serious threat to Canada’s economy, which has been battered by Trump’s volatile tariff regime, as well as a political challenge for Carney.
Canadian business leaders have warned of the impact of the new volley of 50 per cent tariffs on hundreds of products.
Prolonged duties have put financial strain on the country’s car industry, leading to factory closures and job losses.
