US tariffs on Canadian goods paused for three days

The Trump administration paused a 50% tariff on Canadian goods just hours before it was set to take effect at midnight, following weeks of negotiation between Canada-U.S. Trade Minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer. Trump announced the three-day reprieve on Truth Social, saying the two countries had reached a deal 'subject to the finalization of documents,' and tied it to reviving the Keystone XL pipeline.

The tariffs, covering nearly $30 billion Canadian in goods including whisky, honey, cement, milk and hockey sticks, were framed by the Oval Office as retaliation for Canadian alcohol delistings, vehicle duties and dairy quotas. This came months after the U.S. Supreme Court ruled the president lacks emergency authority to impose unilateral international tariffs, prompting the administration to invoke a 1930s trade law instead.

The U.S. Chamber of Commerce warned the tariffs could threaten 13 million American jobs tied to USMCA trade, while a Canadian business survey found over a third of exporters could lose up to half their revenue. Prime Minister Mark Carney had offered to split toll revenue from the Gordie Howe bridge as a negotiating gesture, drawing domestic criticism, while Canada has separately signaled openness to restoring American wine and spirits sales.

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