WASHINGTON \u2014 President Donald Trump announced late on Tuesday night he was putting a three-day pause on new 50% tariffs set \u200bto go into effect on Canadian goods on Wednesday, saying the two countries had reached an agreement.<\/p>\n
The pause was “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL,” Trump said in a post on Truth \u200cSocial.<\/p>\n
There was no immediate comment or confirmation from the Canadian government.<\/p>\n
Trump added in his social media post that the Keystone XL Pipeline \u2014 a project canceled by former President Joe Biden in 2021 after \u2060years of indigenous and environmental opposition \u2014 “may be awoken from the grave,” but \u200bdid not provide details.<\/p>\n
Trump’s post came after he spoke with Canadian Prime \u2060Minister Mark Carney on Tuesday afternoon, their second conversation this week, and after weeks of intense, opaque negotiations.<\/p>\n
Existing U.S. auto tariffs had been a \u200csticking point, two industry sources familiar with \u200cthe talks said earlier.<\/p>\n
The new U.S. tariffs would have covered about $20 billion worth of imports and applied regardless of whether \u2060Canadian goods qualify for preferential treatment under the U.S.-Mexico-Canada trade agreement, which has shielded much \u2060of Canadian industry from earlier U.S. tariffs.<\/p>\n
Billions of dollars at stake<\/p>\n
Trade experts and industry officials say new tariffs could lead to job losses and business closures in vulnerable sectors, including lumber, wine and dairy. They also warn the dispute could complicate broader USMCA negotiations.<\/p>\n
“There are billions in goods per year that were not impacted before, but now are at risk of being impacted significantly,” said Candace Laing, CEO of the Canadian Chamber of Commerce.<\/p>\n
“Business have been doing a high-wire act for well over a year, holding off on hiring, investment \u200cand growing in Canada,” she said.<\/p>\n
Canada’s minister responsible for U.S. trade, Dominic LeBlanc, and chief trade negotiator \u200bJanice Charette have been in Washington since last week for talks.<\/p>\n
On Monday, the Canadian officials met for nearly two hours with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.<\/p>\n
Greer has repeatedly cited Canada’s tariffs that followed initial U.S. tariffs, some provinces’ refusal to stock U.S. liquor and Canada’s dairy supply management system among U.S. grievances.<\/p>\n
Two sources said one of the main sticking points was U.S. tariffs on Canadian vehicles.<\/p>\n
The sides have discussed cutting U.S. Section 232 tariffs on Canadian vehicles to 15% from 25%, with further reductions based on the amount of U.S. content in each vehicle, the sources said.<\/p>\n
The details of the deal touted by Trump remained unclear.<\/p>\n
Counting tariff deductions<\/p>\n
A major point of contention \u200bwas how tariff deductions based on content should be calculated, with Washington demanding that only U.S.-produced content be counted. Canada pushed for all North American content, including Canadian and Mexican \u200cparts, to be \u200ccounted, the sources said.<\/p>\n
Earlier on \u2060Tuesday, the U.S. Commerce Department released new rules for automakers exporting from Canada and Mexico to certify their current levels of U.S. content for tariff deductions, reducing the complicated exercise to once per year from twice.<\/p>\n
But the Federal Register notice said automakers must re-certify vehicles’ American content by September 30 for them to claim deductions in the new annual cycle starting December 1.<\/p>\n
A Canadian government source said last week that all options remained on the table if \u200cthe new tariffs take effect, including government \u200bsupport for affected domestic industries and a possible suspension of bilateral trade talks, but \u200cthe source expressed hope that the U.S. \u2060was keen to reach a \u200bdeal.<\/p>\n
Contributing: David Lawder and David Shepardson<\/p>\n
\n The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.\n <\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON \u2014 President Donald Trump announced late on Tuesday night he was putting a three-day pause on new…\n","protected":false},"author":2,"featured_media":173945,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[525,17,5895,6944,1737,6945,1823,1381,792,116,113,1242,6946,49,1878,252,6947,55],"class_list":["post-173944","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-business","tag-canada","tag-cars","tag-classifieds","tag-finance","tag-homes","tag-international","tag-jobs","tag-local","tag-news","tag-politics","tag-radio","tag-salt-lake","tag-sports","tag-television","tag-traffic","tag-utah","tag-weather"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/173944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=173944"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/173944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/173945"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=173944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=173944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=173944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}