US president delays 50% tariffs for three days as Washington and Ottawa negotiate
US President Donald Trump has paused planned 50% tariffs on Canadian goods for three days, saying the US and Canada are close to finalising a trade agreement.
The tariffs, which were due to take effect on nearly $20bn of Canadian imports, have been delayed while negotiators work to complete the deal.
Deal still being finalised
Trump said the countries had reached a deal “subject to the finalization of documents”.
Canadian Prime Minister Mark Carney said substantial progress had been made but acknowledged that important work remained.
Key issues remain
The negotiations have focused on tariffs affecting Canadian autos, as well as Canada’s restrictions on American liquor sales.
Washington has also pushed for greater access for US dairy products and changes to Canada’s retaliatory tariffs on American goods.
Keystone XL discussed
Trump said a final agreement could also revive the Keystone XL pipeline, which was cancelled by previous US administrations.
The proposed pipeline would transport about 830,000 barrels of oil per day from Alberta to the United States.
Businesses welcome pause
Businesses on both sides of the border welcomed the delay, warning that higher tariffs could increase costs, disrupt supply chains and harm both economies.
Negotiators now have three more days to finalise the agreement before the threatened tariffs could take effect.
