U.S. President Donald Trump announced on Tuesday evening that he had postponed a 50% tariff on certain Canadian goods for three days, citing ongoing trade negotiations between the two countries. The tariffs, originally scheduled to take effect Wednesday morning, were imposed under Section 338 of the Tariff Act of 1930, which Trump invoked in July.
The move follows recent tensions over Canadian policies that the U.S. alleged discriminated against American auto and dairy exports, as well as Canadian restrictions on U.S. alcohol imports in retaliation for earlier U.S. tariffs. Trump stated in a Truth.Social post that the pause was granted "subject to the finalization of documents" and that a trade deal between the U.S. and Canada was close to completion.
The announcement comes amid broader discussions between Trump and Canadian Prime Minister Mark Carney aimed at preventing a renewed North American trade dispute. Earlier this year, the U.S. and Canada engaged in a tit-for-tat tariff battle that raised concerns over the Keystone XL pipeline, a 1,200-mile project intended to transport oil from Alberta to Nebraska.
