Daijiworld Media Network – Washington
Washington, Aug 19: US President Donald Trump has temporarily halted plans to impose 50% tariffs on Canadian imports, saying the United States and Canada have reached a deal subject to finalising the necessary documents.
Trump announced the decision late Tuesday, saying the tariffs, which were scheduled to take effect Wednesday, had been paused for three days. He also hinted that the proposed agreement could revive the long-delayed Keystone XL pipeline project.
“The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions that will continue to protect our market and American workers, along with our Canadian partners,” the Office of the US Trade Representative said.
Canadian Prime Minister Mark Carney confirmed that the postponement would remain in effect until the end of Friday, August 21. He said substantial progress had been made during intensive negotiations, although important issues still needed to be resolved.
The proposed 50% tariffs would have affected around $20 billion worth of US imports from Canada, covering products including hockey equipment, building materials, liquor and certain clothing items.
The last-minute development followed more than a week of intense negotiations between officials from both countries. Carney and Trump held multiple discussions as their governments attempted to resolve differences over trade and tariffs.
Carney said Canada was working to provide greater certainty and benefits for Canadian businesses, workers, farmers and families, while continuing efforts to build a stronger and more competitive domestic economy.
The threatened tariffs were linked to Section 338 of the US Tariff Act of 1930, which allows the White House to impose duties of up to 50% on foreign trading partners accused of discriminating against US commerce.
Canadian officials have also been seeking reductions in existing US tariffs on industrial products such as steel and aluminium, as well as lower duties on automobiles.
A key point of contention has reportedly been the automobile sector, with current US tariffs standing at 25%. Trump has not clarified whether those duties would also be reduced under the emerging agreement.
The US Chamber of Commerce had warned that higher tariffs could hurt both economies, increase costs for American consumers, disrupt supply chains and put millions of jobs linked to the North American trade pact at risk.
The latest development comes amid continued tensions over US trade policy towards Canada. Trump has repeatedly criticised Canadian trade measures and previously threatened additional tariffs following a dispute over an Ontario government advertisement criticising his tariff policies.
With the deadline now extended, officials from both countries are expected to continue negotiations in an effort to finalise the proposed trade agreement before the pause expires.