Trump has paused the planned 50% tariffs on Canadian goods for three days, saying Washington and Ottawa have reached a deal subject to finalising documents.
Trump said the Keystone XL pipeline could be revived as part of the potential agreement, though he did not provide details on how or when it would happen.
The pause follows intensive negotiations between Trump and Canadian PM Mark Carney, with Canada yet to confirm that a final deal has been reached.
Trump Pauses 50% Canada Tariffs For 3 Days, Says US, Canada Have ‘A Deal’
US President Donald Trump said he has paused planned 50% tariffs on Canadian imports for three days, citing a US-Canada deal awaiting final documentation and suggesting the agreement could revive the Keystone XL pipeline
Summary
US President Donald Trump on Tuesday (local time) said he has paused the 50% tariffs on Canada that were due to take effect the following morning, citing a deal reached between Washington and Ottawa that is awaiting final documentation. Trump also said the agreement could pave the way for the revival of the long-stalled Keystone XL pipeline, which was cancelled during former President Joe Biden's administration.
Trump Pauses 50% Tariffs On Canada, Cites Deal
Trump said the tariffs scheduled to begin tomorrow morning have been paused for three days. He said in his post on Truth Social that Canada and the US have a deal, subject to finalisation of documents.
He said, “I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL! The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!”
He didn’t provide any more details of the deal but mentioned the Keystone XL pipeline that runs from Canada into several US states.
Keystone XL Pipeline May Be Revived Under US-Canada Deal
Keystone XL was first proposed in 2008 as a planned pipeline to carry oil from Canada’s western tar sands to US refineries. The project was ultimately abandoned by its owner, TC Energy, in 2021 after then-President Joe Biden revoked a key permit required for the US portion of the 1,200-mile (1,930-km) pipeline. The proposal had become a major point of contention in US-Canada relations, facing opposition from landowners, Native American tribes and environmental groups.
Other major North American oil pipelines, including Dakota Access and Enbridge Line 3, have also encountered sustained resistance from environmental groups, largely over concerns about potential oil spills.
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Trump had invoked Section 338 of the Tariff Act of 1930 last month to threaten the tariffs, citing what his administration described as “discriminatory” trade practices by Canada. The proposed duties would apply to products including wine, hockey sticks and cement, and would cover roughly 5% of Canadian exports to the US.
Section 338 is a rarely used provision that gives the US president the authority to impose tariffs of up to 50% on imports from a country deemed to be discriminating against American goods. The provision had never previously been used for tariffs.
Trump and Canadian Prime Minister Mark Carney held phone conversations on Monday and Tuesday, while officials from both countries have also held repeated rounds of negotiations, according to reports.
Carney told reporters on Monday (local time) that the two countries were having negotiations, detailing them as “very intense and delicate.”
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