Trump and Canada Reach Tentative Tariff Deal After Talks

President Donald Trump announced a three-day pause on planned 50% tariffs on $20 billion worth of Canadian imports after reaching a tentative trade deal with Canadian Prime Minister Mark Carney. The postponement averts immediate import taxes while bilateral negotiations continue.

Less than two hours before massive U.S. tariffs on Canadian goods were set to switch on, President Donald Trump announced a tentative trade agreement to stave off the new duties. The postponement grants a brief respite for businesses that warn the planned 50% tariffs on imports of wine, hockey sticks, and other Canadian products are already taking a toll. Trump invoked a never-before-used legal authority dating back to the Great Depression to announce the import taxes on about $20 billion worth of Canadian imports, amounting to roughly 5% of Canada’s total exports to the United States.

Tariff Pauses and the Path to a Tentative Deal

The U.S. administration originally designed the new import taxes in response to what officials described as Canadian trade discrimination against key American industries. The duties were scheduled to take effect at 12:01 a.m. ET, but Trump took to Truth Social late Tuesday to announce that he was pausing the measures for three days, stating that Canada and the United States have a deal subject to the finalization of documents. With the extension in place, the tariffs remain postponed until 12:01 a.m. Saturday.

Trump Pauses 50% Tariffs on Canada After Reaching Trade Deal

Canadian Prime Minister Mark Carney initially adopted a circumspect tone in a statement released Tuesday night, noting that substantial progress had been made while important work remained. By midday Wednesday, however, Carney boasted on social media that Canada had entered the discussions with the best overall trade terms and secured the best terms in each of Canada’s most important strategic sectors.

Disputed Agriculture Access and Energy Infrastructure

While broad outlines of the agreement began to emerge, key terms remain contested and vague. Trump claimed Wednesday that Canada agreed to eliminate trade barriers for American agriculture. The tariffs will be non-existent for our farmers, Trump told reporters during an impromptu gaggle on the White House South Lawn. However, Canada maintains a supply management system that restricts dairy imports past a specific limit, and Dominic LeBlanc, the minister responsible for Canada-U.S. trade, asserted that Ottawa’s agricultural sector would remain well protected.

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Photo: Aljazeera

Trump also raised the prospect of reviving the long-canceled Keystone XL pipeline, suggesting in his social media post that the infrastructure project may be awoken from the grave alongside an AI-generated image of himself pulling a pipeline out of the ground. The original Keystone XL project was designed to carry up to 830,000 barrels of crude oil daily from Canada’s oil sands to Nebraska before facing cancellation by President Joe Biden in 2021. While Trump linked the pipeline to the broader discussion, Canadian officials noted that reviving Keystone XL aligns with a longstanding Ottawa goal rather than serving as a new U.S. concession.

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Unresolved Metal Duties and Document Finalization

Trump signaled on Wednesday afternoon that the agreement might also encompass lowering U.S. tariffs on Canadian steel and aluminum. At the same time, Canadian trade minister Dominic LeBlanc declined to confirm whether a reduction in metal duties was officially locked into the framework, emphasizing that negotiations and document drafting remain ongoing.

With the three-day pause window ticking down toward Saturday morning, both governments face a tight deadline to draft and formalize the final text before the deferred import taxes permanently lapse or take effect.