Washington DC - President Donald Trump on Tuesday temporarily paused the planned rollout of punishing new 50% tariffs on Canadian goods, as both sides indicated they're close to an agreement.
"I have paused the 50% Tariffs against Canada that were scheduled to kick in tomorrow morning for a three day period," Trump announced in a Truth Social post late on Tuesday, within hours of a midnight deadline.
The delay was "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" he explained.
"The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave! Thank you for your attention to this matter."
Trump's announcement came as a much sought-after reprieve for the Canadians, who were staring down the barrel of steep 50% duties if urgent talks between Canadian Prime Minister Mark Carney and Trump on Tuesday failed to yield a result.
Carney's response to the reprieve was less definitive, however, as he indicated in a statement posted to X that "substantial progress has been made, although there is important work still to be done."
"Over the last number of weeks, Canada has engaged in intensive discussions with the United States to address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers, and families," his statement read.
"While we continue this work, Canada remains focused on building a stronger, more independent, and more competitive economy at home."
Trump's trade pressure on Canada based on claims of "discriminatory treatment"
Renegotiations on the US-Canada-Mexico Agreement (USMCA) have remained fraught, as Trump and other US officials continue to demean the agreement and call its future into question.
US Trade Representative Jamieson Greer's office said on X that the pact between Washington and Ottawa is set to "include comprehensive market access for all American goods, economic security commitments, digital trade alignment" and other provisions.
A proclamation by Trump to pause the duties added that the suspension came about as "Canada has expressed a commitment to remove the discriminations or unreasonable and unequal impositions at issue."
Trump had signed orders for the 50% duties last month, the White House alleging "discriminatory treatment" by Canada against US alcohol, automobile, and dairy products.
The new tariffs would cover products such as wine, hockey sticks and cement. They target around 5.5% of Canada's exports to the US.