Canada tariffs: Trump pauses measures after pipeline deal

President Donald Trump has decided to temporarily halt the implementation of a 50% tariff on Canadian imports, originally scheduled to take effect Wednesday. Trump announced on his Truth Social platform that the tariffs would be paused for three days, citing an agreement reached between the U.S. and Canada, pending final documentation.

While the specifics of the deal remain undisclosed, Trump linked it to the potential resurrection of the Keystone XL pipeline, a project he has consistently supported and which was canceled under the Biden administration. "The great Keystone XL pipeline, that Joe Biden long ago stopped from being built, could be revived!" he stated.

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I have suspended the 50% Tariffs on Canada, which were to be put into effect this morning, for a period of 3 days, because Canada and the United States, pending finalization of documents, have DONE A DEAL!

The announcement comes after Trump signed an executive order on July 20 to impose the steep tariff on most Canadian goods, excluding sectors like energy, potash, critical minerals, and fish. Washington had justified the tariffs by accusing Canada of discriminatory trade practices, particularly in the automotive, dairy, and alcohol sectors, affecting approximately $20 billion in goods.

This development occurred amid ongoing renegotiations of the United States-Mexico-Canada Agreement (T-MEC). Canada had previously warned of potential retaliatory measures, while Prime Minister Mark Carney's government engaged in negotiations with Washington to avert an escalation of their trade dispute before the tariffs took effect.

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The great Keystone XL pipeline, that Joe Biden long ago stopped from being built, could be revived!