Trump Pauses New Canada Tariffs as US and Ottawa Near Trade Deal

By Blessing Nweke

U.S. President Donald Trump has temporarily paused plans to impose new 50% tariffs on a range of Canadian imports, saying the United States and Canada are close to finalizing a trade agreement.

Trump announced the three-day suspension on Tuesday, just hours before the tariffs were scheduled to take effect. The proposed duties would have affected about $20 billion worth of Canadian goods, including wine, dairy products, hockey equipment, building materials and other consumer items.

The president said the pause was based on what he described as a preliminary deal between the two countries, although final documents still need to be completed. Canadian Prime Minister Mark Carney confirmed that significant progress had been made but indicated that negotiations were not yet finished.

The latest development follows weeks of tense trade negotiations between Washington and Ottawa. The Trump administration had accused Canada of maintaining policies that disadvantage American businesses, particularly in sectors such as automobiles, dairy and alcohol.

One major issue in the negotiations involves tariffs on Canadian vehicles and the rules determining which components qualify for lower duties under North American trade arrangements. The two governments are also discussing market access and broader economic cooperation.

Trump has also raised the possibility of reviving the Keystone XL oil pipeline, a project canceled during President Joe Biden’s administration.

Canadian businesses have welcomed the temporary reprieve but remain cautious, warning that prolonged tariff uncertainty could increase costs, disrupt supply chains and threaten jobs.

The three-day pause gives negotiators additional time to finalize an agreement and prevent another escalation in trade tensions between the two neighboring allies.