Trump pauses 50% tariffs on $28-billion in Canadian goods for three days

U.S. President Donald Trump announced late Tuesday he would delay a new round of 50 per cent tariffs on roughly $28-billion worth of Canadian goods for three days, just hours before they were set to take effect. Trump said on social media the pause reflects a pending deal with Canada, "subject to the finalization of documents," and referenced the Keystone XL pipeline in his post.

A White House proclamation said Canada has committed to removing "discriminations" against U.S. goods, naming provincial bans on American liquor, Canada's retaliatory quota on tariff-free U.S. vehicle imports, and the dairy supply management system. The U.S. Trade Representative said the deal would include broader market access for American goods, economic security commitments and digital trade alignment.

Prime Minister Mark Carney said "substantial progress" has been made but more work remains, and did not mention Keystone XL in his statement. Business groups including the Canadian Chamber of Commerce and the Canadian Federation of Independent Business welcomed the reprieve but cautioned that a temporary delay is not the same as a signed deal, noting sectoral tariffs on steel, aluminum, lumber and autos still need to be addressed.

American liquor bans imposed by several provinces after last year's tariffs remain in place everywhere except Saskatchewan and Alberta; the U.S. spirits industry says those bans have cut American exports by more than 70 per cent. Keystone XL, which would have carried Alberta oil to Nebraska before being cancelled in 2021, was revived by executive order earlier this year, though it's unclear how much it factored into the trade talks.