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Tariffs paused, deal pending
The United States and Canada reached a last-minute deal to delay steep tariffs on billions of dollars of Canadian goods, with US President Donald Trump making the announcement shortly before the 50-percent duty was due to take effect at midnight.
“granting a temporary reprieve to exporters fearful of a renewed trade war”
Al Jazeera reported that the tariffs would have applied to some $20.2bn worth of Canadian exports, affecting goods ranging from electronics and industrial machinery to furniture, dairy products and wine.
Al Jazeera also said Canadian Prime Minister Mark Carney confirmed that the US had agreed to suspend the tariffs until August 22, after Trump and Carney held talks on Tuesday aimed at finding common ground.
In a separate report, El Confidencial said Trump paused for three days the entry into force of the 50% tariffs on imports from Canada scheduled for this Wednesday, claiming the two countries had reached an agreement that remains to be formalized.
El Confidencial quoted Trump writing on his Truth Social network: "I have suspended the 50% tariffs against Canada, which were to take effect tomorrow morning, for a period of three days, because Canada and the United States, while awaiting the completion of the documents, have reached an AGREEMENT!"
Keystone XL in focus
Trump’s tariff pause was linked to the possibility of reviving the Keystone XL Pipeline, which Al Jazeera said has faced strong opposition and numerous delays since it was first proposed in 2008.
Al Jazeera reported that the Keystone XL Pipeline would transport about 830,000 barrels of crude oil each day between the Canadian province of Alberta and the US state of Nebraska, and said former US President Joe Biden revoked a key permit for the US stretch in 2021.
In the same Al Jazeera account, Trump said in a social media post: "The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!"
El Buen Tono said Trump raised the possibility of reviving the Keystone XL oil pipeline project, canceled during the administration of former president Joe Biden, as part of discussions between both governments.
El Buen Tono also quoted Trump on Truth Social: "Canada and the United States, pending formalization of the documents, have reached an agreement,"
What’s at stake next
The tariff threat and the negotiations were framed as part of a broader effort to avoid escalation, with Al Jazeera describing the 11th-hour breakthrough as relief for Canadian exporters who depend on US consumers more than any other market.
“Approximately 70 percent of Canadian exports go to the US”
Al Jazeera reported that approximately 70 percent of Canadian exports go to the US, while the US sends about 30 percent of its exports to Canada, and said the tariffs were invoked with the first-ever use of Section 338 of the Tariff Act of 1930.
In the same report, Al Jazeera said the tariffs were announced last month in response to Ottawa’s “discriminatory treatment” of US automobiles, dairy products and alcoholic drinks, and noted that carve-outs under the US-Mexico-Canada Agreement had allowed a large majority of US-Canadian trade to remain tariff-free until now.
El Confidencial added that the tariffs would affect about $20 billion in goods, roughly 5% of U.S. imports from Canada, and said the decision came amid renegotiations of the USMCA as Canada warned of possible retaliation.
El Confidencial also stated that Washington justified the new levies by what it considered discriminatory trade practices by Canada toward U.S. products, especially in the auto, dairy, and alcoholic beverage sectors.
