President Donald Trump used his Truth Social platform on Tuesday to announce a three‑day pause on the 50% tariffs he threatened against $20 billion worth of Canadian imports. The pause, effective until 12:01 a.m. Saturday, gives both nations time to finalize a trade agreement that Trump described as “very fair for both sides.”
Tariff threat and pending agreement
Last month Trump invoked a rarely used legal authority from the Great Depression era to announce the 50% tariffs, which would have affected roughly 5% of Canadian exports to the United States, ranging from hockey sticks to tongue depressors. He claimed Canada discriminates against U.S. autos, alcohol and cheese, and expressed anger that Canada and China were the only countries to retaliate with their own tariffs.
During a White House gaggle on the South Lawn, Trump said the emerging deal would eliminate tariffs on U.S. agricultural products, stating, “The tariffs will be non‑existent for our farmers. Our farmers were paying tremendous tariffs into Canada, and those tariffs are going to be totally eviscerated. Down to zero.”
Canadian response
Dominic LeBlanc, Canada’s minister responsible for U.S.‑Canada trade, returned to Ottawa to meet Prime Minister Mark Carney. LeBlanc said Canada’s agriculture sector will remain “well protected” while maintaining a “tough line.” The specifics of how Canada will preserve its supply‑management dairy system while granting U.S. farmers greater access were not disclosed.
Carney indicated the agreement would provide “greater certainty and preserve favorable terms for key sectors,” but did not detail what tariff relief Washington offered in return.
Keystone XL pipeline hint
In the same Truth Social post, Trump suggested the long‑canceled Keystone XL pipeline could be “awoken from the grave,” though he did not confirm whether pipeline revival is part of the trade deal. The White House declined to comment further. Earlier this year, Trump approved a new Canada‑to‑U.S. pipeline nicknamed “Keystone Light,” which would move up to 550,000 barrels of oil per day through Montana and Wyoming.
Alcohol and other sector disputes
Eight of Canada’s ten provinces restrict or ban U.S. alcohol, a retaliation to previous U.S. tariffs. The emerging deal reportedly includes a Canadian commitment to address those restrictions, but provincial governments, such as Ontario’s LCBO, cannot be compelled to restore sales without provincial agreement. Other provincial priorities include dairy supply‑management in Quebec, auto protection in Ontario, and softwood lumber in British Columbia.
Implications for broader North American trade
The pause may smooth the path for formal U.S.–Canada negotiations under the broader USMCA framework, which the United States is already renegotiating with Mexico. With 72% of Canada’s goods exports destined for the United States, both sides have incentives to avoid an escalation that could raise consumer prices ahead of the November midterm elections.
Gillies reported from Toronto.
Original reporting: KTBS 3 (Shreveport) — read the source article.
