Trump pauses 50% tariffs as US, Canada reach trade deal
What's the story
US President Donald Trump has announced a temporary suspension of the 50% tariffs on Canada. The tariffs were set to take effect on Wednesday, August 19, but Trump said the two nations have "a deal," pending final document completion. The announcement also hinted at the possible revival of the Keystone XL Pipeline, indicating a positive turn in trade relations between Washington and Ottawa.
Negotiation details
Tariff talks
The decision to pause the tariffs comes after intense negotiations between the US and Canada.
The talks were held just before a Wednesday deadline set by Trump.
The President had previously threatened to impose 50% tariffs on $20 billion worth of Canadian goods, from hockey sticks to tongue depressors, if no agreement was reached.
The tariffs, if implemented, would have impacted around $20 billion worth of US imports from Canada, according to the US Trade Representative's office.
Trade impact
Impact of proposed tariffs
The proposed tariffs would have had a major impact on both countries.
In 2025, approximately 72% of Canada's total merchandise exports were destined for the United States, underscoring Ottawa's heavy trade reliance on Washington.
The tariffs would have also affected US importers, who would have had to bear the costs before passing them onto consumers.