Trump Pauses 50% Tariffs on $20 Billion in Canadian Goods After Reaching Trade Deal
Action Halts Planned 50% Duties on $20 Billion in Canadian Goods
President Donald Trump announced late Tuesday that he is pausing proposed 50% tariffs on $20 billion worth of Canadian imports following direct negotiations, citing a preliminary trade agreement between the United States and Canada pending final documentation.
President Donald Trump said late Tuesday that he is pausing 50% tariffs on Canadian goods scheduled to take effect Wednesday, saying the two countries have reached a deal pending final documentation.
“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 U.S.A., subject to the finalization of documents, have a DEAL!” Trump wrote on Truth Social. “The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump added.
The Keystone XL Pipeline project was designed to transport 830,000 barrels of crude oil per day from Alberta, Canada, to Steele City, Nebraska, before Calgary-based TC Energy terminated the $9 billion project in June 2021 following President Joe Biden’s cancellation of its cross-border permit. Re-establishing the pipeline infrastructure would require renewed presidential authorization and updated environmental reviews, according to official records maintained by the U.S. Department of Energy.
Trump’s announcement came just hours before the tariffs were scheduled to take effect for a three-day period under the Tariff Act of 1930. Section 338 of the 1930 statute grants the executive branch authority to levy retaliatory duties of up to 50% on products from foreign nations determined to discriminate against U.S. commerce.
The duties would have covered roughly $20 billion in Canadian imports, including liquor, dairy products, vehicles, hockey equipment and other goods. Certain food products, wearables, synthetic materials and industrial goods were also expected to be affected.
Trump spoke with Canadian Prime Minister Mark Carney on Monday night and reportedly spoke with him again Tuesday afternoon, according to FOX Business correspondent Edward Lawrence.
