President Donald Trump late Tuesday paused imposing 50% tariffs on certain Canadian imports, shortly before the duties were set to take effect at midnight, citing a pending deal with Ottawa.
In a post on Truth Social, Trump said the pause was "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" The announcement followed trade talks between Trump and Canadian Prime Minister Mark Carney held on Tuesday.
Trump also suggested in his post that the Keystone XL pipeline could be "awoken from the grave!" The pipeline refers to an extension of a pipeline system between Canada and the United States. Trump had authorized the project during his first term, but former President Joe Biden revoked the permits in 2021.
The 50% tariffs, unveiled last month, were being imposed under Section 338 of the Tariff Act of 1930, a Great Depression-era law that has rarely, if ever, been invoked. The Trump administration said the tariffs responded to Canadian trade discrimination in the motor vehicle, alcohol and dairy industries, and would have covered roughly $20 billion worth of Canadian imports, according to the Office of the U.S. Trade Representative. That compares with $382 billion in total U.S. imports from Canada last year.
