US President Donald Trump paused the planned rollout of punishing new tariffs on Canadian goods late Tuesday, as both sides indicated they were close to a broader trade agreement after weeks of talks.
US President Donald Trump announced the three-day reprieve from 50-percent duties on select goods just hours before a midnight deadline.
Ottawa and Washington have held intense negotiations on revising their existing deal, the United States-Canada-Mexico Agreement (USMCA), which Trump signed and praised during his first term but now says needs to change. The delay was “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. Canadian negotiators have been in Washington to push for a deal to avoid the new tariffs and also secure relief on Trump’s sector-specific duties — which have battered Canada’s auto, steel, lumber and aluminum industries.
Canadian Prime Minister Mark Carney was less definitive, saying “substantial progress has been made” towards a comprehensive trade deal, but “there is important work still to be done. Carney said the prospective deal aims to “address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families. Oxford Economics said in a recent report that the duties would “affect central Canada’s manufacturing sector much more severely While this only poses a “modest” negative risk to Canada’s economy.
