Trump Announces Three-Day Delay on 50% Canada Tariffs, Says US and Canada ‘Have a Deal’

President Donald Trump announced a last-minute breakthrough with Canada Tuesday night, delaying his planned 50% tariffs on billions of dollars in Canadian imports for three days after declaring that Washington and Ottawa have reached a tentative trade agreement.

The tariffs had been scheduled to take effect Wednesday morning and would have targeted approximately $20 billion worth of Canadian goods. Trump announced the delay less than two hours before the deadline, giving negotiators additional time to finalize the details of the emerging agreement.

Trump said the three-day pause was granted because the United States and Canada, subject to finalizing the necessary documents, now “have a DEAL!” The president did not immediately reveal the full terms, leaving several major trade issues to be resolved or formally documented.

Canadian Prime Minister Mark Carney was more cautious about describing the negotiations. Canadian officials acknowledged that substantial progress had been made but indicated that important issues remained unresolved, suggesting the three-day window will be crucial for turning the preliminary understanding into a finalized agreement.

The threatened 50% tariffs were aimed at a range of Canadian products, including wine, hockey equipment, cement and other consumer and building goods. Energy products and critical minerals were among the categories excluded from the new duties.

Trump invoked Section 338 of the Tariff Act of 1930 to justify the new duties, accusing Canada of discriminating against American exports. The administration has specifically objected to Canadian policies affecting American automobiles, alcohol and dairy products.

Canada had prepared retaliatory measures if Trump’s tariffs took effect, raising the possibility of another escalation in the trade fight between two countries that conduct hundreds of billions of dollars in commerce with each other every year. The agreement temporarily removes that immediate threat while negotiators work against another tight deadline.

One of the most intriguing elements of the negotiations involves the Keystone XL pipeline. Trump suggested the long-stalled project could be revived as part of the emerging agreement, raising the possibility that the pipeline canceled under Joe Biden could receive another opportunity under the Trump administration.

Keystone XL became a major political flashpoint after Biden revoked a key presidential permit for the project in 2021. Trump has long supported expanding North American energy infrastructure, and his decision to publicly mention Keystone while announcing the Canadian tariff breakthrough immediately fueled speculation that the pipeline could become part of the final package.

The agreement marks a dramatic turnaround from only hours earlier, when negotiations appeared to be heading toward failure. Trump and Carney had been personally involved in last-minute discussions while officials from both countries worked to prevent the tariffs from taking effect.

The next three days will determine whether the breakthrough becomes a lasting trade agreement. For now, Trump has kept the threat of massive tariffs in reserve while giving Canada a short window to finalize the deal, potentially handing the president another major trade agreement without having to impose the threatened 50% duties.