The United States and Canada reached a last‑minute agreement Tuesday to delay steep tariffs on billions of dollars’ worth of Canadian goods, granting a temporary reprieve to exporters worried about a renewed trade war.
US President Donald Trump announced the deal shortly before a 50 per cent duty was due to take effect at midnight, reports Al Jazeera.
Canadian Prime Minister Mark Carney confirmed soon after that Washington had agreed to suspend the tariffs until 22 August.
The breakthrough followed talks between Trump and Carney earlier in the day, capping weeks of tense negotiations.
The tariffs would have applied to about $20.2bn in Canadian exports, covering electronics, industrial machinery, furniture, dairy products and wine.
In a post on Truth Social, Trump said he had agreed to a three‑day pause “subject to finalization of documents.” He also linked the deal to his push to revive the Keystone XL Pipeline, which would carry 830,000 barrels of crude oil daily from Alberta to Nebraska. The project was effectively cancelled in 2021 when then‑President Joe Biden revoked a key permit.
“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump wrote.
Carney said “substantial progress” had been made but stressed that “important work still [remains].” He added, “While we continue this work, Canada remains focused on building a stronger, more independent, and more competitive economy at home.”
The suspension offers relief to Canadian exporters, who rely on US consumers for about 70 per cent of their overseas sales. By contrast, roughly 30 per cent of US exports go to Canada.
Trump has repeatedly targeted Canada with punitive trade measures since returning to the White House, but the latest tariffs stood out for covering goods that normally qualify for duty‑free treatment under the United States‑Mexico‑Canada Agreement.
Carve‑outs in the three‑way pact, ratified during Trump’s first term, had until now shielded most US‑Canada trade from such duties.
