US President Donald Trump announced a three-day delay in imposing heavy 50 percent tariffs on a wide range of Canadian goods. The decision was made just hours before the midnight deadline, after Washington and Ottawa managed to agree on a framework for a trade agreement.
The news of the temporary truce was announced by Trump himself on his social network Truth Social late Tuesday night. According to the American head of state, the entry into force of the tariffs is being postponed by three days in order to finalize the official documentation of the deal. He also hinted that the negotiations could revive the controversial Keystone XL oil pipeline project, which was previously suspended by the Joe Biden administration.
What did the threat of a 50% tariff include?
The punitive measures, signed by Trump in July in the form of three presidential proclamations, were supposed to affect Canadian exports to the United States worth about $20-28 billion. Key sectors hit by the new levies included:
- Automotive and auto parts
- Dairy products (especially American cheese and cottage cheese)
- Alcoholic beverages (wine and spirits)
- Lumber, cement and even sporting goods like hockey sticks
Washington justified its actions under Section 338 of the Tariff Act, accusing Canada of discriminatory policies against American businesses and imposing internal bans on the sale of American alcohol in Canadian provinces.
Intense last-minute negotiations
The final decision was reached after a series of extraordinary and extremely delicate phone calls over the past 48 hours between Donald Trump and the Canadian Prime Minister Mark Carney. At the same time, Canadian International Trade Minister Dominic LeBlanc held tough final meetings in Washington with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to iron out differences.
The main sticking points in the negotiations remain related to the U.S. demand for preferential access to Canadian deposits of critical minerals (lithium, nickel, cobalt), strengthening defense cooperation, and opening Canada's protected dairy market to American farmers. Canadian businesses and unions have expressed serious concerns that a potential tariff war would lead to mass layoffs and bankruptcies, as over 72% of the country's total exports are directed specifically to the American market.
Despite the three-day delay, economic experts warn that tensions remain high. The talks come at a critical time ahead of a mandatory review and renegotiation of the broader United States-Mexico-Canada Agreement (USMCA) later this year.