Trump Suspends 50% Tariff on Canadian Goods After Claiming Trade Deal

President Donald Trump has suspended for three days a new 50% tariff on Canadian goods that was due to take effect on Wednesday, saying Canada and the United States had reached a deal. Trump made the announcement on Tuesday night, but the agreement has not yet been formally confirmed by the Canadian government.

In a post on Truth Social, Trump said the tariff suspension was conditional on the completion of the deal’s documentation. He announced the move after speaking with Canadian Prime Minister Mark Carney on Tuesday afternoon, marking their second conversation this week.

The announcement followed several weeks of intense and largely opaque negotiations between the two countries over tariffs and trade. Two industry sources familiar with the talks said existing tariffs on vehicle imports from Canada had emerged as a major point of disagreement.

Trump also said the Keystone XL pipeline project, which was cancelled in 2021 under former President Joe Biden, could potentially be revived. He did not provide further details on the project.

The proposed new tariffs would have affected around $20 billion worth of Canadian goods. They would also have applied to Canadian products eligible for preferential treatment under the United States-Mexico-Canada trade agreement.