Donald Trump pauses 50% tariffs on Canadian goods for three days
President Donald Trump has paused the implementation of 50% tariffs on Canadian goods for three days, citing progress toward a new trade agreement. Both nations are currently negotiating updates to the USMCA trade deal to address disputes over specific product categories.
Why it matters
The temporary reprieve signals a potential de-escalation in trade tensions between the US and Canada, which could have significant economic impacts on cross-border commerce.
U.S. President Donald Trump paused the planned rollout of punishing new tariffs on Canadian goods late Tuesday (August 18, 2026), as both sides indicated they were close to a broader trade agreement after weeks of talks.
Mr. Trump announced the three-day reprieve from 50% duties on select goods mere hours before 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!” Mr. Trump wrote on his Truth Social platform.
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.”
Ottawa and Washington have held intense negotiations on revising their existing deal, the United States-Canada-Mexico Agreement (USMCA), which Mr. Trump signed and praised during his first term but now says needs to change.
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