Trump pauses $20bn Canadian tariffs for three days
US President Donald Trump has delayed the 50 % tariff that was to take effect tomorrow on a wide range of Canadian goods, citing the firming of a trade deal between Washington and Ottawa. The pause will last for three days, which President Trump announced via a post on Truth Social. The leverage would have added $20 billion (C$28 billion) in new duties to Canada’s imports from the US, affecting wine, dairy, cement, clothing and hockey equipment – on top of existing steel, aluminium, auto and lumber tariffs.
The announcement followed less than two hours before the tariffs were scheduled to go into effect. Negotiations have been re‑open after both leaders pressed on their priorities, including U.S. calls for lowered tariffs on Canadian autos and dairy and a reversal of Canada’s ban on American liquor sales.
Trump said the deal could also enable the Keystone XL pipeline to restart, a project that was blocked by previous administrations. The pipeline would carry 830,000 barrels of oil a day from Alberta to the U.S., a project opposed by environmentalists and indigenous groups but welcomed by U.S. oil interests.
While the pause is welcome for Canadian negotiators and businesses, both sides still have stubborn points. Canada demands the removal of its remaining retaliatory tariffs on U.S. autos and the removal of the provincial liquor bans, whereas the United States seeks concessions on auto content thresholds and dairy quotas.
Toronto‑based Carney and Washington officials meet again in hopes of finalizing a formula that widens American auto access and eases Canada’s dairy restrictions. Oh, the role of Ontario Premier Doug Ford, who leads a province struggling under U.S. auto tariffs, which will weigh on the negotiations as the liquor ban remains under provincial control.
The U.S. Chamber of Commerce urges a swift resolution, warning that higher tariffs would hurt both economies, drive up costs for families, disrupt supply chains and threaten 13 million U.S. jobs dependent on the US‑Mexico‑Canada Trade Agreement. The next two days will reveal whether the pause is a breath holding maneuver or the start of a major bipartisan trade reset.
