US-Canada tariff row eases: Trump pauses 50% levies after last-minute deal
The United States and Canada have reached a last-minute agreement to pause planned 50% tariffs on $20 billion worth of Canadian imports. The deal provides a three-day window to finalize documentation and potentially revives the Keystone XL Pipeline project.
Why it matters
This de-escalation prevents a significant trade war between two of the world's largest trading partners, which would have impacted consumer prices and cross-border supply chains.
The United States and Canada reached a last-minute deal on Tuesday to delay President Donald Trump’s planned 50 per cent tariffs on $20 billion worth of Canadian imports, giving the two countries more time to negotiate a broader trade agreement.Trump was set to impose the tariffs from 12.01 am, but announced on social media that he had paused them after the two sides reached what he called a “DEAL”, subject to finalising the documents as Canada and US held last-minute talks."I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the USA, subject to the finalization of documents, have a DEAL! The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!"
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