WASHINGTON (Gray DC) – President Donald Trump temporarily halted new tariffs against Canada late Tuesday, citing a last-minute deal.
The 50% tariffs, scheduled to take effect at midnight, would have affected about $20 billion worth of Canadian imports.
“They called yesterday and they gave us the points that we had to have,. Very fair deal for both,” Trump said Wednesday. “It’s good for everybody, but our farmers are going to be thrilled. Our manufacturers are going to be thrilled.”
In a Truth Social post Tuesday night, Trump said agreement remains subject to final documentation. He also suggested the unfinished Keystone XL pipeline expansion could be included, writing that the project “may be awoken from the grave.”
Canadian Prime Minister Mark Carney struck a more cautious tone.
“Substantial progress has been made, although there is important work still to be done,” Carney said in a statement.
The three-day pause follows months of disputes over Trump’s trade policy. Earlier this year, the Supreme Court struck down the legal authority the president had used to impose his original tariffs.
The administration is now relying on a different strategy, invoking the Tariff Act of 1930. The law allows the president to impose tariffs against countries found to discriminate against U.S. commerce.
Without a final agreement, states that rely heavily on Canadian trade could face further economic consequences. Democratic officials have criticized the ongoing dispute.
“Canada is Kentucky’s number one trading partner, and they’ve been a good trading partner,” Kentucky Democratic Gov. Andy Beshear said. “But because he has demeaned them, because he has questioned their sovereignty, they’ve taken Kentucky bourbon off their shelves, which hurts our economy.”
Rep. Brad Schneider (D-Ill.) said tariffs have also increased costs for families and damaged his state’s economy.
“The average family in Illinois has paid more than $2,200 more since President Trump was elected because of tariffs. It’s cost the Illinois economy more than $5 million in GDP,” Schneider said.
The tariff pause is scheduled to remain in place through the end of Aug. 21 as negotiators work toward a final agreement.
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