Trump pauses 50% tariffs on Canadian goods, says deal reached

President Donald Trump has put a three-day hold on 50% tariffs slated to take effect on Canadian goods, announcing that the United States and Canada have reached an agreement. The pause, detailed in a post on Truth Social, is contingent on the finalization of documents, Trump stated.

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based on the fact that Canada and the USA, subject to the finalization of documents, have a DEAL

This development follows recent conversations between Trump and Canadian Prime Minister Mark Carney, and comes after weeks of intensive negotiations. Industry sources indicated that existing U.S. auto tariffs had been a significant hurdle. The proposed tariffs would have impacted approximately $20 billion worth of imports, regardless of their preferential status under the U.S.-Mexico-Canada trade agreement.

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may be awoken from the grave

Experts and industry leaders warned that the tariffs could lead to job losses and business closures in sectors like lumber, wine, and dairy, potentially complicating broader USMCA negotiations. Candace Laing, CEO of the Canadian Chamber of Commerce, expressed concern over the uncertainty, noting that businesses have been hesitant to invest and hire.

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There are billions in goods per year that were not impacted before, but now are at risk of being impacted significantly

Discussions between Canadian officials and U.S. trade representatives focused on several grievances, including Canadian tariffs, provincial restrictions on U.S. liquor sales, and Canada's dairy management system. A primary point of contention was the reduction of U.S. Section 232 tariffs on Canadian vehicles, with proposals to lower them from 25% and further adjust based on U.S. content. The specifics of how tariff deductions would be calculated, particularly regarding North American versus solely U.S. content, remained a key issue.

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Business have been doing a high-wire act for well over a year, holding off on hiring, investment and growing in Canada