Trump Pauses New Tariffs on Canada for Three Days, Saying Deal Close
BBC News reports that US President Donald Trump has delayed imposing new tariffs on a wide array of Canadian goods for three days, citing progress in trade negotiations.
Trump announced on social media: "I have paused the 50% Tariffs against Canada… based on the fact that Canada and the U.S.A. have a DEAL!"
The announcement came ahead of a planned 50% levy on nearly $20bn (£14.8bn; C$28bn) of Canadian imports.
Key points:
- The two countries have been negotiating a trade deal, resolving several disputes, including US tariffs on autos and Canadian bans on US liquor sales.
- Trump and Canadian Prime Minister Mark Carney had multiple discussions this week.
- The final trade agreement may include revival of the Keystone XL pipeline.
- The extension is welcomed by Canadian negotiators and businesses on both sides.
- Tensions have risen since Trump’s return to office, leading to widespread US tariffs on Canadian goods.
- The latest tariffs would have targeted Canadian wine, dairy, cement, clothing, and hockey equipment, in addition to existing tariffs on steel, aluminium, autos, and lumber.
- Canada seeks a deal dropping or reducing these tariffs, while the US requests concessions on auto tariffs and dairy quotas.
In the final hours, negotiators discussed a potential deal reducing US auto tariffs from 25% to 15%, according to Reuters.
