U.S. President Donald Trump said he would delay for three days the implementation of new tariffs on a wide range of Canadian goods, as the two countries work to finalize a trade agreement.
“I have suspended the 50% tariffs on Canada, which were scheduled to take effect tomorrow morning, for a period of three days, based on the fact that Canada and the United States, pending the finalization of the documents, have a DEAL!” Trump wrote on social media.
The announcement came less than two hours before a 50% tariff on approximately $20 billion worth of Canadian imports was due to take effect.
The two countries have remained at odds over several issues, including U.S. tariffs on automobiles and restrictions in several Canadian provinces on the sale of American alcoholic beverages.
Trump and Canadian Prime Minister Mark Carney have spoken twice this week, while trade negotiators have been engaged in intensive talks since July, after Trump threatened to impose the new tariffs with an August 19 deadline.
“Significant progress has been made, although important work remains to be done,” Carney said in a letter posted on X.
Trump also said that a final trade agreement could pave the way for the revival of the Keystone XL pipeline project, which would connect Alberta with the United States. The project was blocked under the administrations of Barack Obama and Joe Biden.
Environmental groups and Indigenous communities have long opposed the project, while Trump has repeatedly said he wants to revive it. Keystone XL would have been capable of transporting approximately 830,000 barrels of oil per day.
“The great Keystone XL Pipeline, killed long ago by Sleepy Joe Biden, may be rising from the dead!” Trump wrote on Truth Social.
The Office of the U.S. Trade Representative, led by Jamieson Greer, said the agreement would include “comprehensive market access for all U.S. goods, economic security commitments, and digital trade alignment.”
It would also contain “many important provisions that will continue to protect our market and American workers, together with our Canadian partners,” the office said.
The tariff delay was welcomed by Canadian negotiators and businesses on both sides of the border, which have warned that the new tariffs could harm both economies.
Tensions between the two major trading partners have intensified since Trump returned to office in January last year and launched a broad global tariff program, disrupting decades of relatively free trade between Canada and the United States.
