Trump delays new Canada tariffs for three days as US and Canadian negotiators work to finalise a trade deal.
US President Donald Trump has delayed new tariffs on Canadian goods for three days. The move comes as both countries push to finalise a trade deal. Trump said the 50% tariffs were due to begin Wednesday morning. However, he paused them after talks made “substantial progress”.
“Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump posted.
Canadian Prime Minister Mark Carney also confirmed progress. Still, he said “important work” remains before both sides seal the agreement.
The Proposed Tarrif Would Affect Nearly So Much
The proposed tariffs would affect nearly $20bn worth of Canadian imports. Products include wine, dairy, cement, clothing and hockey equipment. They would also come on top of existing US tariffs. Those tariffs already cover Canadian steel, aluminium, autos and lumber.
Meanwhile, Canada wants Washington to cut tariffs on key industries. The country also wants better access to the US market.
Several Issues Still Causing Friction
Several issues are still causing friction between both countries. The US wants Canada to remove retaliatory tariffs on American autos. It also wants greater access for US cheese producers.
Another sticking point is Canada’s ban on American liquor sales. Most provinces introduced the ban after Trump’s earlier tariffs. Carney will need support from provincial leaders before lifting those restrictions. Ontario Premier Doug Ford says he could support the move after a “fair deal”.
Final Agreement Could Revive A Lot
Interestingly, Trump says the final agreement could revive the Keystone XL pipeline. The proposed pipeline would carry about 830,000 barrels of oil daily. Trump said the project “may be awoken from the grave”. Environmental and Indigenous groups have opposed the pipeline for years.
For businesses, the tariff delay offers some breathing room. The US Chamber of Commerce warned higher tariffs could hurt both economies. It also said they could raise costs and disrupt major supply chains.
For now, negotiators have three more days to turn progress into a final deal.
