US President Donald Trump has paused planned new tariffs on Canadian imports for three days, saying the United States and Canada are close to reaching a trade agreement. The temporary suspension came just hours before the proposed 50% tariffs were due to take effect.
Trump said the two countries had made significant progress toward a deal and that the additional time would allow officials to finalize the agreement. Canadian Prime Minister Mark Carney also confirmed that substantial progress had been made, although Canadian officials indicated that important issues still need to be resolved.
The proposed tariffs would affect around $20 billion worth of Canadian goods, raising concerns among businesses on both sides of the border. Industries including dairy, alcohol, lumber and other sectors have been closely watching the negotiations because higher tariffs could increase costs and disrupt established supply chains.
The latest development represents another attempt by Washington and Ottawa to prevent their trade dispute from escalating. The United States and Canada maintain one of the world’s largest bilateral trading relationships, making tariff decisions particularly important for manufacturers, exporters and consumers.
Trump has also suggested that the long-discussed Keystone XL oil pipeline could potentially return to the negotiating table, adding another economic issue to the broader discussions.
For now, the three-day pause provides both governments with a limited window to complete negotiations. If an agreement is finalized, it could prevent the immediate introduction of the steep tariffs and ease pressure on Canadian exporters. However, with several major issues still under discussion, the outcome remains uncertain.
