WASHINGTON, U.S. President Donald Trump has postponed plans to impose 50% tariffs on a wide range of Canadian goods, giving the two countries three more days to work toward a trade agreement.
Trump announced the delay on Tuesday, shortly before the new tariffs were due to take effect. He said the United States and Canada had made progress toward a deal, pending the completion of the final documents.
The proposed tariffs would have affected about $20 billion worth of Canadian imports, including products such as dairy, wine, clothing, cement and hockey equipment.
Canadian Prime Minister Mark Carney confirmed the three-day delay, saying that “substantial progress” had been made but that negotiations were still continuing.
The latest move follows several days of intense discussions between officials from the two countries. Trump and Carney have also spoken twice by phone this week as both sides seek to resolve their differences.
The United States has been pressing Canada to open its markets further to American dairy, vehicles and alcohol. Canada, meanwhile, has been seeking lower or reduced U.S. tariffs on key Canadian exports.
The two countries are also negotiating changes linked to the US-Mexico-Canada Agreement (USMCA), which governs much of their trade.
Trump also raised the possibility of reviving the Keystone XL pipeline, a major oil project that has long been supported by his administration but opposed by environmental and Indigenous groups.
Canadian businesses and trade groups have welcomed the tariff delay, although they continue to call for a lasting agreement that would provide greater certainty for companies and consumers on both sides of the border.
The three-day extension gives negotiators until August 21 to complete their discussions and potentially avoid another escalation in the trade dispute.
