Trump Pauses 50% Tariffs on Canada as US and Ottawa Near Major Trade Deal

US President Donald Trump has suspended plans to impose new 50 per cent tariffs on selected Canadian goods after Washington and Ottawa indicated they were close to reaching a broader trade agreement.

The three-day pause was announced just hours before the tariffs were scheduled to take effect, with Trump saying the decision followed progress in negotiations between both countries.

Trump wrote on his Truth Social platform that the delay was “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!”

Canadian Prime Minister Mark Carney, however, struck a more cautious tone, saying significant progress had been made but stressing that some key issues still needed to be resolved before a final agreement could be announced.

The negotiations focus on updating the United States-Canada-Mexico Agreement (USMCA), a trade pact signed during Trump’s first administration. The US president has argued that changes are needed to address what he described as unfair trade practices affecting American businesses.

The US Trade Representative’s office said the potential agreement would include wider access for American products, economic security measures and cooperation on digital trade. Trump’s administration had previously accused Canada of discriminatory treatment involving US alcohol, automobile and dairy products.

The planned tariffs would have affected goods including wine, hockey equipment and cement, covering about 5.5 per cent of Canada’s exports to the United States, valued at roughly $20 billion.

Canadian officials have been pushing for a deal to prevent additional pressure on key industries, including automobile manufacturing, steel, lumber and aluminium. Ottawa has reportedly offered concessions, including efforts to improve access for US alcohol products in Canadian markets.

Economic analysts warned that while the overall impact of the tariffs on Canada’s economy could be limited, some manufacturing sectors in central Canada would face greater pressure if the measures were implemented.

The two countries are now racing to complete the remaining details of the agreement, with the outcome expected to shape trade relations between North America’s two largest economies.