U.S. President Donald Trump has paused new 50% tariffs on certain Canadian imports and declared that a new trade deal has been reached between Washington, D.C. and Ottawa.
The 50% tariffs were paused shortly before the new duties were scheduled to begin at midnight.
In a social media post, Trump said that this was “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!”
However, Trump gave few details of the supposed deal and neither did Canadian Prime Minister Mark Carney, who only said that “more work needs to be done.”
The implementation of the new duties was paused after Trump and Carney reportedly held a phone call late on Aug. 18.
In his social media post, Trump said that the Keystone XL oil pipeline that runs between Canada and the U.S. could be “awoken from the grave!”
Trump had approved the Keystone XL project in his first term in office, but former U.S. President Joe Biden later canceled it.
The new 50% tariffs would have impacted imports of Canadian-made hockey sticks, wine, and automotive parts, among other items.
The Trump administration had said they were imposing the new duties on Canada for trade discrimination against American-made alcohol and dairy products.
In all, the new tariffs would have covered roughly $20 billion U.S. worth of Canadian imports, according to the Office of the U.S. Trade Representative.
The U.S. imported nearly $400 billion U.S. of goods and services from Canada in 2025.
Trump said the imposition of the 50% tariffs is being delayed until Aug. 22, subject to a final deal with Canada being signed.
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