US President Donald Trump has paused the planned introduction of new 50% tariffs on a wide range of Canadian goods for three days, saying the United States and Canada are close to reaching a new trade agreement. Trump announced the decision on Tuesday, just hours before the tariffs were scheduled to take effect. He said the suspension was based on the belief that the two countries had reached a deal, although the final documents still need to be completed. The proposed tariffs would have affected nearly $20 billion worth of Canadian imports, including wine, dairy products, cement, clothing a

US President Donald Trump has paused the planned introduction of new 50% tariffs on a wide range of Canadian goods for three days, saying the United States and Canada are close to reaching a new trade agreement. Trump announced the decision on Tuesday, just hours before the tariffs were scheduled to take effect. He said the suspension was based on the belief that the two countries had reached a deal, although the final documents still need to be completed. The proposed tariffs would have affected nearly $20 billion worth of Canadian imports, including wine, dairy products, cement, clothing and hockey equipment. They would have come on top of existing US tariffs on Canadian steel, aluminium, automobiles and lumber. Canadian Prime Minister Mark Carney welcomed the progress but cautioned that negotiations were not yet complete. In a statement posted on X, Carney said “substantial progress” had been made while acknowledging that important work remained. Key issues remain unresolved Trade negotiations between Washington and Ottawa have focused on several major disagreements. The United States has been pressing Canada to remove retaliatory tariffs on American products, increase access for US dairy producers and lift restrictions on American alcohol sales in several Canadian provinces. Canada, meanwhile, has been seeking reductions in US tariffs on important sectors, particularly automobiles. According to a Reuters report, negotiators were discussing a possible reduction of US tariffs on Canadian automobiles from 25% to 15%. However, the two sides remained divided over which vehicles would qualify for the lower rate, with Washington reportedly pushing for the benefit to apply mainly to vehicles containing a high proportion of US-made components. The issue of American alcohol sales could also prove difficult. Liquor distribution is controlled by Canada's provinces, meaning Carney would need the support of provincial premiers to reverse the restrictions. Keystone XL pipeline could return Trump also suggested that a final agreement could potentially revive the Keystone XL pipeline, a long-delayed project designed to transport oil from Alberta to the United States. The pipeline has faced strong opposition from environmental and Indigenous groups and was blocked under previous US administrations. Trump has repeatedly expressed support for reviving the project, which was designed to carry around 830,000 barrels of oil per day. The Office of the US Trade Representative said a potential agreement would include greater market access for American goods, economic security commitments and cooperation on digital trade. Businesses welcome the pause The three-day extension has been welcomed by businesses on both sides of the border, which have warned that higher tariffs could increase costs, disrupt supply chains and hurt workers and consumers in both countries. The US Chamber of Commerce has also urged Washington and Ottawa to reach an agreement, warning that higher tariffs could damage both economies and put millions of jobs connected to trade at risk. The United States and Canada are among each other's most important trading partners. Their latest dispute has created uncertainty for businesses that rely heavily on cross-border trade. With the new deadline approaching, negotiators now have three more days to finalize the agreement and prevent the threatened tariffs from taking effect.

A little more informed. A little more connected.