President Donald Trump used his Truth Social platform on Tuesday to announce a three‑day pause on the 50% tariffs that were set to take effect against Canadian imports at 12:01 a.m. Wednesday. The tariffs would have applied to roughly $20 billion in goods, ranging from hockey sticks to medical supplies.
Deal reached just hours before deadline
According to the White House, the United States and Canada reached a last‑minute agreement less than two hours before the sanctions were to begin. The deal, still pending final documentation, allows the tariffs to be delayed while negotiations continue.
Canadian Prime Minister Mark Carney confirmed that “substantial progress” had been made and that Canada had agreed to the three‑day postponement. Both leaders spoke by phone twice in the past two days, underscoring the urgency of the talks.
Economic and political stakes
Canada exports nearly 72% of its goods to the United States, making the two economies deeply intertwined. Imposing a 50% levy would have raised costs for U.S. importers, who could have passed higher prices on to consumers—a concern ahead of the November midterm elections, when voters are already feeling the pinch of rising living costs.
Trade experts, including Ryan Majerus of King & Spalding and former U.S. trade official, said both sides were motivated to avoid the tariffs, noting a “pretty strong push on both sides to find an off‑ramp.” The Canadian Chamber of Commerce’s Candace Laing called the delay a temporary relief but urged negotiators to reach a definitive agreement.
Legal background
The tariffs were being threatened under Section 338 of the Tariff Act of 1930, a law dating back to the Great Depression. That provision allows the president to impose up to a 50% duty on imports from countries that discriminate against U.S. businesses, without requiring a prior investigation and without a set expiration date.
Section 338 has never been used before. Trump’s administration has previously invoked the law to pressure Canada for concessions in the renegotiated US‑Mexico‑Canada Agreement (USMCA), which he helped shape during his first term.
What comes next?
The three‑day pause buys time for both governments to finalize the paperwork and potentially craft a more permanent solution. While the immediate threat of the tariffs has been averted, the underlying trade dispute remains unresolved, and further negotiations are expected in the weeks ahead.
Original reporting: NBC Connecticut — read the source article.
