Washington: US President Donald Trump has announced a three-day pause on the planned 50% tariffs on Canadian imports, saying the United States and Canada have reached a deal, subject to finalising the necessary documents.
Trump made the announcement on Truth Social on Tuesday, just hours before the tariffs were scheduled to take effect.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump said.
The temporary pause is expected to give negotiators additional time to finalise an agreement. Talks between the two countries have intensified in recent days, with Canadian officials meeting members of Trump’s negotiating team in Washington.
Had the tariffs taken effect, approximately US$28 billion worth of Canadian products — including hockey sticks, cement, alcohol and honey could have faced the 50% levy.
Keystone XL pipeline back in discussion
Trump also raised the possibility of reviving the controversial Keystone XL pipeline, which was cancelled during Joe Biden’s presidency.
“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump said.
The pipeline has been a long-running political issue in the United States. It was initially approved after being cancelled under former President Barack Obama, later revived by Trump during his first term and subsequently cancelled again by Biden.
The United States has been seeking greater access to Canadian energy and critical minerals, although it remains unclear whether the Keystone XL project is part of the latest negotiations.
Key issues remain on the table
Canada has raised concerns over US auto tariffs, while Washington has sought changes to Canadian restrictions on American alcohol products. Ontario’s liquor authority has maintained a ban on American alcohol products since March 2025.
Canadian Prime Minister Mark Carney and Trump spoke directly on Monday and Tuesday as officials from both countries continued negotiations.
Carney had earlier said the next 48 hours would be important for the discussions, with both sides expected to continue working toward an agreement.
The three-day tariff pause provides temporary relief for Canadian businesses and communities that were preparing for a sharp increase in duties, while allowing both governments additional time to complete the proposed deal.
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