Trump pauses 50% tariffs against Canada due to potential deal

U.S. President Donald Trump on Tuesday night said he would pause 50% tariffs against most Canadian goods, which were scheduled to start Wednesday morning. The pause would last for three days while Canada and the United States continued talks on a tentative trade deal, Trump said. The deal still needed to be finalized, he said while giving few details.

Trump did suggest that the deal could include the resumption of the Keystone XL oil pipeline project. Former President Joe Biden canceled the controversial pipeline, which would have transported Canadian crude oil to Texas refineries, on his first day in office. Many environmental advocates and several Native American tribes argued that the project would harm protected nature areas and reservation lands.

U.S. Trade Representative Jamieson Greer gave a few more details on the deal, saying it would open widespread access to the Canadian market for all American goods. It would also include economic security commitments and digital trade agreements, he said.

What did Canada say about the tentative deal? Prime Minister Mark Carney said the pause on tariffs came after weeks of intense negotiations with the United States. Much progress had been made, he said, without giving further details. He also noted that Canada was working to strengthen its own economic independence.

Dig deeper: Read Christina Grube’s report on Trump’s earlier statements on the pipeline.