President Trump postponed new 50 percent tariffs on certain Canadian imports for three days late Tuesday, telling reporters Wednesday, “We had a very good conversation with the prime minister last night, and we’ve come to a deal with Canada.” But both sides are still working to finalize an agreement that would avert the duties and potentially revive the Keystone XL pipeline.
A White House proclamation moved the tariffs’ effective date from Wednesday to 12:01 a.m. Saturday. The duties, announced July 20, target Canadian goods in disputes involving alcoholic beverages, dairy products, and motor vehicles. The statement said Canadian officials had expressed “a commitment to remove the discriminations or unreasonable and unequal impositions” the Trump administration cited. Mr. Trump determined that negotiations warranted the three-day suspension.
Canadian Prime Minister Mark Carney offered a more cautious assessment after speaking with Mr. Trump, though he thanked Dominic LeBlanc, minister responsible for Canada-U.S. trade, and U.S. Trade Representative Jamieson Greer. “Congratulations Minister LeBlanc and Ambassador Greer for the significant progress in the Canada-United States trade negotiations,” he wrote Wednesday on X. “Canada entered these discussions with the best overall trade terms. We are now moving towards an agreement that reinforces that Canadian advantage, including by securing the best terms in each of Canada’s most important strategic sectors and providing greater certainty about our future trading relationship.”
Mr. Carney’s post responded to one by Mr. LeBlanc, who said he and Canada’s chief trade negotiator had met that morning with Mr. Greer in Washington. “We are working collaboratively towards a finalized agreement between our two countries,” Mr. LeBlanc wrote. “Efforts remain ongoing.”
Mr. Trump said on Truth Social late Tuesday night that the countries, “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!”
Speaking with reporters Wednesday, Mr. Trump said Canada had agreed to U.S. demands involving tariffs affecting American farmers. “The tariffs will be non-existent for our farmers. Our farmers were paying tremendous tariffs into Canada, and those tariffs are going to be totally eviscerated down to zero,” Mr. Trump said. “We’re doing certain things.”
Mr. Trump acknowledged Washington also made concessions, without disclosing them. “They were paying a high number. We’re reducing it a little bit. It’s good for everybody,” he said. “So, subject to the finalization of documents, we have a deal with Canada, and I think it’s a very good deal for both parties.”
The administration announced the threatened tariffs July 20 under Section 338 of the 1930 Tariff Act, saying Canada discriminated against U.S. commerce through restrictions involving American alcoholic beverages, dairy products, and vehicles. The White House said Canadian imports of U.S. alcoholic beverages had fallen about 81 percent from March 2025 through February 2026 compared with the preceding 12-month period. It also criticized Canada’s cheese quotas and automobile tariff system.
The threatened tariffs would affect about $20 billion in Canadian imports and apply even to goods otherwise qualifying for preferential treatment under the United States-Mexico-Canada Agreement.
The Washington Star reported in July that Mr. Trump ordered separate 50 percent tariffs on selected Canadian goods, including hockey sticks and the Peruvian liquor pisco.
