President Donald Trump announced late Tuesday that he had paused 50% tariffs on billions of dollars of Canadian goods for three days, after they were set to take effect at midnight, due to a last-minute deal with Ottawa.
“I have paused the 50% Tariffs against Canada that were scheduled to take place tomorrow morning for a three day period based on the fact that Canada and the U.S.A. subject to the finalization of documents have a DEAL!” Trump wrote on his Truth Social platform. In addition to the tariffs, he also did not specify the terms of the deal.
The tariffs, which affected approximately $20 billion to $30 billion in Canadian goods under section 338 of the Tariff Act of 1930, were the first ever imposed by a U.S. president. They targeted a wide range of products including alcohol, hockey equipment, cement and dairy, while exempting major areas of trade such as energy, potash and minerals. The White House defended the measures as a response to the discriminatory trade practices of Canada towards U.S. automakers and dairy producers as well as retaliatory measures by Canada, such as provincial bans on American alcohol.
The Trump administration’s decision to pause the tariffs came after a phone call with Canadian Prime Minister Mark Carney on Tuesday, which was their second in two days. The conversation was described by a spokesperson for Mr. Carney as one in which he discussed “ongoing negotiations.” According to a person familiar with the talks, however, the meeting was “not easy” and that the parties “are not there yet,” suggesting that the deal is far from being completed.
In addition, Mr. Trump stated that the Keystone XL pipeline canceled by his predecessor Joe Biden “may be awoken from the grave,” although it was not clear if there was a general renewal of interest in the project or simply a continuation of work on it. In addition to the opposition from the Biden administration, Keystone XL faced criticism from environmentalists who accuse it of threatening biodiversity and communities in the path of the pipeline, while opponents in Congress believe it would undermine energy security. However, Mr. Trump’s comments could also relate to the fact that a pipeline industry executive approved a project to transport oil through empty pipes from the canceled Keystone XL pipeline.
Meanwhile, it should be noted that the U.S. Chamber of Commerce has strongly opposed the threatened tariffs, calling them a “mistake” in a statement issued on Tuesday. The chamber warned that these measures would “hurt both economies …, raise costs for American families, destabilize key supply chains, and damage the 13 million American jobs that depend on trade with our northern neighbor.”
