President Donald Trump has temporarily suspended the planned 50% tariffs on Canadian goods, just hours before the measures were scheduled to take effect. The decision follows a last-minute agreement between the United States and Canada, although several details still need to be finalized.
Trump said the suspension will last three days, giving negotiators additional time to complete the necessary paperwork and finalize the agreement. Canadian Prime Minister, Mark Carney, confirmed that substantial progress had been made but acknowledged that important issues remain unresolved.
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The proposed tariffs would affect around $20 billion worth of Canadian imports, including products such as alcoholic beverages, dairy goods, furniture and other merchandise. The measure had generated concern among businesses on both sides of the border because of the potential impact on prices and cross-border trade.
Trump also suggested that the negotiations could include discussions about reviving the Keystone XL oil pipeline, a project canceled during Joe Biden’s presidency.
Why did Trump suspend the tariffs?
The temporary pause gives Washington and Ottawa more time to finalize their preliminary agreement and avoid an immediate escalation in the trade dispute.
