President Donald Trump has announced a three-day delay on imposing 50 percent tariffs on approximately 20 billion dollars worth of Canadian goods. The announcement came late Tuesday night, shortly before a 12:01 a.m. Wednesday deadline, following high-stakes negotiations in Washington. The steep levies, which would have affected 5 percent of Canadian exports to the United States, were paused to allow both countries to finalize the documents of a last-minute agreement.
The potential deal would see the Trump administration reduce tariffs on automobiles imported from Canada from 25 percent to 15 percent, while Canada would drop its retaliatory trade measures. President Trump also announced that the agreement ensures no tariffs for U.S. farmers and businesses exporting to Canada. Beyond trade levies, Trump suggested that the controversial Keystone XL Pipeline project could be revived.
The two allies, who traded nearly 1 trillion dollars in goods and services last year, have faced strained relations as the U.S. continued a push to enforce tariffs and levies. While the current pause avoids immediate escalation into a broader trade conflict, the U.S. President did not confirm if the planned levies would be cancelled entirely.
Canadian Prime Minister Mark Carney hailed the significant progress made in the trade talks but noted that important work remains to be done before a final deal is reached. Negotiators from both countries are continuing talks in Washington to hammer out the remaining details before the new weekend deadline.