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Agence France-Presse

US President Donald Trump paused the planned roll-out of punishing new tariffs on Canadian goods late on Tuesday, as both sides indicated they were close to a broader trade agreement after weeks of talks.
Trump announced the three-day reprieve from 50 per cent duties on select goods mere hours before a midnight deadline.
The delay was “based on the fact that Canada and the U.S.A., subject to the finalisation of documents, have a DEAL!” Trump said on social media.
Canadian Prime Minister Mark Carney was less definitive, saying “substantial progress has been made” towards a comprehensive trade deal, but “there is important work still to be done”.
Ottawa and Washington have held intense negotiations on revising their existing deal, the United States-Canada-Mexico Agreement (USMCA), which Trump signed and praised during his first term but now says needs to change.
The US Trade Representative’s office said on social media that the pact between Washington and Ottawa is set to “include comprehensive market access for all American goods, economic security commitments, digital trade alignment” and other provisions.
A proclamation by Trump to pause the duties added that the suspension came about as “Canada has expressed a commitment to remove the discriminations or unreasonable and unequal impositions at issue”.
Carney said the prospective deal aims to “address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families”.

Trump signed orders for the 50 per cent duties last month, with the White House alleging “discriminatory treatment” by Canada against US alcohol, automobile and dairy products.
The new tariffs would cover products such as wine, hockey sticks and cement.
They target around 5.5 per cent of Canada’s exports to the US, worth about US$20 billion, Oxford Economics estimates.
While this only poses a “modest” negative risk to Canada’s economy, Oxford Economics said in a recent report that the duties would “affect central Canada’s manufacturing sector much more severely”.
Canadian negotiators have been in Washington to push for a deal to avoid the new tariffs and also secure relief on Trump’s sector-specific duties, which have battered Canada’s auto, steel, timber and aluminium industries.
Ottawa reportedly offered concessions like pressuring provinces to put US alcohol and wine back on their shelves.
Without going into details, Trump added in his post: “The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!”
Trump has previously called for the revival of the controversial project opposed by environmental activists, which was blocked under his predecessor Joe Biden.


“It’s not unusual for a trade negotiation to go right up to the deadline,” former US commerce official Christopher Padilla said.
He said that the Trump administration threatened new tariffs to try and win early concessions from Canada as the countries negotiate new terms for the USMCA.
Padilla warned that Trump also has “a history of lashing out against allies when he is frustrated on other fronts”, such as when he is not getting what he wants from parties like Iran, China or Russia.
Oxford Economics anticipates that manufacturers who stand to be most affected include those in the cement, paper, printing, wood, clothing and electronic equipment sectors.
With the US Supreme Court striking down many of Trump’s global tariffs earlier this year, the president had tapped an untested legal provision for the new duties targeting Canada.
The US duties will not apply to Canadian energy, potash or goods already facing sector-specific tariffs, but are set to hit products covered by the USMCA.
Trump’s trade envoy Jamieson Greer said the tariffs aimed to “hold Canada accountable” for its retaliation against the US.
Provinces have taken US alcohol products off their shelves and “given better market access to dairy products from the European Union”, among other actions, Greer said in July.


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Trump delays 50% US tariffs on Canadian goods for 3 days after last-minute talks

A truck with vehicles crosses the Blue Water Bridge border from Ontario, Canada, into the US in April 2025. Photo: TNS

US President Donald Trump (left) speaks to the media while Canadian Prime Minister Mark Carney looks on, as they meet during the G7 Summit in Kananaskis, Alberta, Canada, in June 2025. Photo: TNS 

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A banner reading “Buy Canadian”, in response to US President Donald Trump’s tariffs on goods from Canada, is held aloft by a pair of hockey sticks in front of a house in Winnipeg, Manitoba, in March 2025. Photo: Reuters

Canadian Prime Minister Mark Carney speaks in Montreal, Canada, in April. Photo: AFP

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Vehicles crossing the Gordie Howe International Bridge. Photo: Reuters

A vehicle approaches US customs on the Gordie Howe International Bridge in Detroit. Photo: The Canadian Press via AP

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The sun rises next to The Empire State Building through a cover of wildfire smoke on Friday. Photo: Reuters 

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Ontario Premier Doug Ford speaks in front of a live map of smoke movement during a press conference in Toronto on Friday. Photo: The Canadian Press via AP

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US President Donald Trump on Sunday. Photo: Reuters

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US and Canada flags flutter next to the Blue Water Bridge border crossing in Point Edward, Ontario. Photo: AFP

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United States & Canada

The US president also said the Keystone XL Pipeline project cancelled by Biden ‘may be awoken from the grave’


The US president also said the Keystone XL Pipeline project cancelled by Biden ‘may be awoken from the grave’.


Trump delays 50% US tariffs on Canadian goods for 3 days after last-minute talks

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The US president also said the Keystone XL Pipeline project cancelled by Biden ‘may be awoken from the grave’

The US president also said the Keystone XL Pipeline project cancelled by Biden ‘may be awoken from the grave’