Trump Pauses 50% Tariffs on Canada for Three Days After Last-Minute Trade Breakthrough

WASHINGTON — In a dramatic eleventh-hour reversal, U.S. President Donald Trump announced late Tuesday that he has temporarily paused a sweeping 50% tariff on Canadian imports. The steep levies, which were set to strike roughly 20 billion dollars worth of cross-border goods at midnight, have been put on hold for three days as negotiators scramble to finalize a comprehensive trade pact.

Writing on social media less than two hours before the midnight deadline, Trump declared that Washington and Ottawa had reached an agreement, subject to the formal execution of documents.

"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!" Trump wrote.

A Brinkmanship Standoff Averted

The threatened tariffs—targeting a diverse array of Canadian products including cement, alcohol, and hockey equipment—had threatened to severely test relations between the two closest North American allies. Business associations and industry leaders on both sides of the border had warned that the heavy import taxes would disrupt critical supply chains, inflate consumer prices, and jeopardize hundreds of thousands of manufacturing jobs.

Intense, high-stakes negotiations stretched across Washington and Ottawa over preceding days, featuring direct phone calls between Trump and Canadian Prime Minister Mark Carney.

Confirming the development, Prime Minister Carney’s office acknowledged that substantial progress had been made during the marathon talks, though officials stressed that critical technical details still required immediate attention. As part of the interim understanding, the United States Trade Representative (USTR) noted that the incoming framework aims to secure comprehensive market access for American goods, strengthen mutual economic security, and align digital trade rules.

Keystone XL Hinted at in Agreement

True to form, Trump used the announcement to inject broader geopolitical ambitions into the discussions, floating the possibility that the framework could pave the way for reviving the long-dormant Keystone XL pipeline project.

"The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" Trump added in his post.

With a strict three-day clock now ticking down for legal and administrative teams to pen the final text, both capitals are under intense pressure to translate the verbal framework into a lasting pact—and permanently defuse what would have been a historic escalation in North American trade barriers.