Washington: President Donald Trump has delayed the planned 50% tariffs on a wide range of Canadian goods, preventing the duties from taking effect at 12.01 am Eastern Time as originally scheduled. The pause came after last-minute negotiations between the United States and Canada.
Tariffs put on hold
The proposed measures would have affected roughly $20 billion worth of Canadian imports, including products such as wine, dairy goods, building materials and hockey equipment. The tariffs were introduced under Section 338 of the US Tariff Act of 1930.
Trump announced a three-day pause while the two countries work towards finalising a broader trade agreement. Canadian Prime Minister Mark Carney confirmed progress in the discussions but said important issues still needed to be resolved.
Talks continue between Washington and Ottawa
The negotiations have focused on market access, digital trade and other economic issues. Disputes over Canadian dairy policies, vehicle tariffs and access to liquor markets remain among the key areas under discussion.
Trump has also raised the possibility of reviving the Keystone XL pipeline, adding another dimension to the negotiations.
Relief for businesses, but uncertainty remains
The temporary pause offers immediate relief to businesses that could have faced higher costs and disrupted supply chains. However, the tariffs have not been permanently withdrawn.
Both governments now have a limited window to complete the agreement and prevent the proposed duties from returning, keeping the future of the US-Canada trade relationship closely watched.