President Trump pauses 50 percent Canada tariffs for three days citing a deal

WASHINGTON - President Trump announced late Tuesday that he paused new 50 percent tariffs on a range of Canadian goods for three days, saying the United States and Canada have a deal subject to final documents, according to The Hill, CBS News, Reuters, and MarketWatch.

The tariffs had been set to take effect at midnight. Trump wrote on Truth Social that he paused the 50 percent tariffs for three days based on a deal still being finalized. He also said the Keystone XL pipeline, previously blocked under the Biden administration, may move forward again.

The U.S. Trade Representative office said the emerging agreement would include market access for American goods, economic security commitments, and digital trade alignment. Canadian Prime Minister Mark Carney said substantial progress has been made and important work remains. Carney and Trump spoke by phone Monday and Tuesday, The Hill reported.

Trump had threatened the duties under Section 338 of the Tariff Act of 1930, a rarely used tool that allows tariffs of up to 50 percent when a country is found to discriminate against U.S. products. Targeted Canadian goods ranged from dairy and autos to liquor, wine, hockey sticks, and cement, covering about 5 percent of Canadian exports to the United States, according to reporting.

White House materials said Canada had expressed a commitment to remove what it called discriminatory or unequal measures on goods such as dairy, autos, and liquor. U.S. Trade Representative Jamieson Greer had said earlier that retaliation against U.S. tariffs would not be tolerated.

For U.S. shoppers and businesses, a three-day pause avoids an immediate price jump on listed Canadian imports while negotiators finish paperwork. If documents fail, the higher rates could return. Energy and pipeline language in the president's message also matters for long-run fuel and construction costs.