Key facts
- President Donald Trump delayed 50% tariffs on $20 billion of Canadian imports for three days.
- The delay follows a last-minute trade deal between the U.S. and Canada.
- Canada's Prime Minister Mark Carney confirmed substantial progress in negotiations.
- The tariffs were set to take effect at 12:01 a.m. Wednesday.
- Canada had threatened retaliation against the tariffs.
President Donald Trump announced he would delay a planned 50% tariff on approximately $20 billion worth of Canadian imports for three days, following a last-minute trade agreement between the two nations. The tariffs were scheduled to take effect early Wednesday morning.
Dominic LeBlanc, Canada's minister responsible for trade with the U.S., stated that the two countries were "very close" to an agreement that could reduce tariffs. Prime Minister Mark Carney confirmed that "substantial progress" had been made in ongoing discussions, though he acknowledged that important work remained. Canada agreed to the three-day postponement of the tariffs while negotiations continue.
Trump made the announcement on his social media platform, indicating that a deal was in place, subject to finalization of documents. The potential tariffs would have impacted a range of Canadian products, from hockey sticks to tongue depressors. Canada had previously threatened to retaliate with its own levies, escalating a trade dispute between the two countries, which together traded $880 billion in goods and services last year. A White House proclamation suggested Canada committed to removing measures considered discriminatory against U.S. alcohol, dairy, and motor vehicle exports, though Canada had not immediately confirmed these commitments.