Trump hits pause on Canada tariffs threat, and hints at revival of Keystone XL oil pipeline project
President Trump has temporarily paused a 50% tariff on Canadian goods following a last-minute deal between the two nations. He also suggested the potential revival of the Keystone XL oil pipeline project, which was previously halted in 2021.
Why it matters
The decision avoids an immediate trade war between the US and Canada while signaling a potential shift in North American energy policy.
Mark Carney and Donald Trump at the White House in Washington DC on 7 October 2025. Trump has paused tariffs on Canada for three days. Photograph: Adrian Wyld/The Canadian Press/AP Mark Carney and Donald Trump at the White House in Washington DC on 7 October 2025. Trump has paused tariffs on Canada for three days. Photograph: Adrian Wyld/The Canadian Press/AP Trump tariffs Trump hits pause on Canada tariffs threat, and hints at revival of Keystone XL oil pipeline project US president delays 50% tariffs by three days, and says contentious oil project ‘may be awoken from the grave’
Prefer the Guardian on Google Canada has temporarily avoided a bruising 50% US tariff, reaching a Tuesday-evening agreement with Trump administration officials hours before a hike that would have affected $20bn worth of goods was set to take effect.
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