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Tariffs Paused, Deal Pending
President Donald Trump said he paused the 50 percent tariffs on Canadian imports for three days, writing on Truth Social, "I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three-day period."
“"subject to finalization of documents"”
The pause came shortly before the tariffs were due to take effect at midnight, with the proposed duties tied to a deal "subject to finalization of documents" as Trump described it.
Al Jazeera reported the United States and Canada reached a last-minute deal to delay steep tariffs on billions of dollars of Canadian goods, granting a temporary reprieve to exporters fearful of a renewed trade war.
The Hill said the announcement came "just a few hours before the tariffs were supposed to go into effect at midnight," and noted Trump mentioned the Keystone XL pipeline in his post.
Al Jazeera also said Canadian Prime Minister Mark Carney confirmed shortly afterwards that the US had agreed to suspend the tariffs until August 22.
Keystone XL in the Mix
Trump linked the tariff pause to a possible revival of the Keystone XL Pipeline, posting, "The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!"
The New York Times said Trump announced the delay on imposing 50 percent tariffs in a social media post on Tuesday night, roughly 90 minutes before the midnight deadline.
Carney told reporters that "substantial progress has been made, although there is important work still to be done," while the White House proclamation said Canada had agreed to make certain trade concessions.
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.
The Hill added that Trump threatened these tariffs under Section 338 of the Tariff Act of 1930, a law that allows the president to impose tariffs of up to 50 percent on a country found to discriminate against U.S. products.
What’s at Stake Next
The proposed tariffs would have applied to about $20.2bn worth of Canadian exports, with Al Jazeera listing goods ranging from electronics and industrial machinery to furniture, dairy products and wine.
“"discriminatory treatment"”
The Hill said the tariffs would hit products ranging from "wine to hockey sticks to cement," and account for about 5 percent of Canadian exports to the United States.
Al Jazeera reported that the pause is temporary and framed as relief for Canadian exporters, while also noting that Trump announced the tariffs last month after invoking Section 338 in response to Ottawa’s "discriminatory treatment" of US automobiles, dairy products and alcoholic drinks.
The Guardian said the duties would have affected a range of Canadian exports including wine and hockey sticks, and noted the Keystone XL project was halted in 2021 by owner TC Energy after Joe Biden revoked a key permit needed for a US stretch of the 1,200-mile (1,930km) project.
In the meantime, The Hill quoted U.S. Trade Rep. Jamieson Greer saying, "If a country retaliates against us, we’re obviously not going to tolerate that," as negotiations continued and the three-day window for final documentation approached.
