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Trump pauses new tariffs on Canada and says countries close to a deal
President Trump paused new tariffs on Canadian goods for three days, citing a pending deal. The proposed agreement may revive the Keystone XL pipeline, a project with a long and contested history, as negotiators work through remaining differences.
Less than two hours before new U.S. tariffs were set to hit Canadian goods, President Donald Trump announced a three-day pause, citing a breakthrough in talks. In a social media post, Trump stated, "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!" The tariffs, which would have applied a 50% levy on nearly $20bn (C$28bn) of Canadian imports, were averted at the last minute, according to a BBC report.
The development marks a significant step in a tense period between the two countries, which have been at odds over trade issues since Trump returned to office. The latest round of tariffs was scheduled to target a range of Canadian goods, including wine, dairy, cement, clothing, and hockey equipment. These were to be in addition to existing U.S. tariffs on Canadian steel and aluminium, autos, and lumber.
Keystone XL Emerges as Possible Part of a Deal
Central to the emerging agreement is the potential revival of the Keystone XL pipeline, a project with a long and contested history. Trump, in his social media post, suggested that the final trade deal could allow the project to move forward. He wrote, "The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" The post was accompanied by an AI-generated image of Trump pulling the pipeline from a grave marked "BURIED BY BIDEN."
According to CP24, the pipeline, first proposed in 2008 by TC Energy Corp. and ConocoPhilips (then TransCanada Corp.), has been a flashpoint for over a decade. The project would have carried Canadian crude oil to the U.S. Gulf Coast, potentially increasing exports by more than 12 per cent. The current Keystone pipeline, built between 2008 and 2010, runs from Hardisty, Alta., across Saskatchewan and Manitoba, crossing into the U.S. near Haskett, Man.
A Rocky History of Approvals and Cancellations
The Keystone XL project's history has been marked by repeated reversals. The Canadian Energy Board approved the project in 2010 with 22 conditions, but it was later shut down by the Obama administration in January 2012. Trump vowed to revive it during his 2016 campaign and signed an executive order in January 2017. Construction began in April 2020, only to be cancelled by the Biden administration in January 2021, which cited economic and environmental objectives. Former Canadian Prime Minister Justin Trudeau expressed disappointment at the cancellation, while then-Alberta premier Jason Kenney threatened legal action.
In February 2025, Trump posted about reviving the project, and in October, Prime Minister Mark Carney pitched it to Trump in exchange for tariff relief, according to CP24. Alberta Liberal MP Corey Hogan confirmed to CP24 that the pipeline was being used as leverage in trade talks. CTV News political analyst Eric Ham noted to CP24 that the pipeline could be a 'sticking point' for Trump, who has prioritized oil and energy in negotiations.
Negotiations on Tariffs and Market Access
A key point of contention has been the U.S. demand for greater market access for its goods. According to a BBC report, the U.S. has been pushing Canada to remove retaliatory tariffs on American autos and adjust dairy quotas to allow more US cheese producers access. The U.S. also wants Canada to lift a ban on American alcohol sales imposed by most Canadian provinces.
As reported by BBC, citing a Reuters report, negotiators were discussing a deal to reduce U.S. tariffs on Canadian autos from 25% to 15%. However, the two countries could not agree on which vehicles would be eligible, with the U.S. pushing for the reduction to apply only to cars with high American content. Carney will need the support of provincial premiers to reinstate alcohol sales, as Ontario Premier Doug Ford indicated he was open to lifting the ban only if a 'fair deal' is reached.
Business groups have welcomed the tariff pause. The U.S. Chamber of Commerce urged both sides to reach an agreement, warning that higher tariffs would damage both economies and risk 13 million American jobs dependent on U.S.-Canada trade.
Prime Minister Carney acknowledged progress in a statement, saying, "Substantial progress has been made, although there is important work still to be done."
How each outlet told it
BBC — World
Framing: Headline emphasizes the tariff pause and the progress toward a deal, with the pipeline as a secondary element. — Measured and informative, with a focus on the trade negotiation dynamics and the potential impact on businesses.
Facts Included:
Trump said he will delay imposing new tariffs on a wide array of Canadian goods for three days.
Trump cited 'the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!'
The announcement came less than two hours before a 50% levy on nearly $20bn (C$28bn) of Canadian imports were set to go in place.
The two sides have been at an impasse on several issues, including US tariffs on autos and many Canadian provinces banning American liquor sales.
Trump and Prime Minister Mark Carney spoke twice this week, and trade negotiators have been engaged in intense talks since July.
Trump threatened the new levy with a deadline of 19 August.
Trump's post mentioned that a final trade deal could allow the revival of the Keystone XL pipeline.
The pipeline would connect Alberta to the US, was blocked by both the Obama and Biden administrations.
Environmentalists and indigenous groups have long opposed the pipeline.
The pipeline would carry 830,000 barrels of oil a day.
Trump's quote: 'The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!'
The extension is welcome news for Canadian negotiators and for businesses on both sides of the border.
Tensions have mounted since Trump returned to office in January last year and unleashed a wide-ranging global programme of tariffs.
The latest tariffs were to be applied on a range of Canadian imports, including wine, dairy, cement, clothing and hockey equipment.
They would have been in addition to existing tariffs on Canadian steel and aluminium, autos and lumber.
Canada has been in pursuit of a deal to drop or reduce tariffs on these key sectors.
The US has been asking for concessions, including removing retaliatory tariffs on American autos and adjusting dairy quotas to allow greater access for US cheese producers.
The US also asked for the ban on US alcohol sales, imposed last year by most Canadian provinces, to be removed.
In the final hours, negotiators were discussing a deal to reduce US tariffs on Canadian autos from 25% to 15%, according to a Reuters report citing anonymous sources.
The two countries could not agree on which vehicles would be eligible for tariff reductions, with the US pushing for it to only apply on cars with a high amount of American-made content.
Carney will need buy-in from provincial premiers to reinstate the sale of US alcohol, as liquor sales are controlled by the provinces.
Ontario Premier Doug Ford said he was open to lifting the liquor ban only if a 'fair deal' is reached.
On Tuesday, the US Chamber of Commerce pushed for a deal, saying higher tariffs would damage both economies, drive up costs for US families, disrupt supply chains, and risk the 13 million American jobs that depend on trade under USMCA.
Framing: Focuses on the potential revival of the Keystone XL pipeline as a key element of the trade deal, with a backgrounder tone. — Explanatory and neutral, with a focus on the project's contested history and current trade leverage.
Facts Included:
Trump hinted at reviving the Keystone XL pipeline in a Truth Social post Tuesday night.
Trump suspended 50% tariffs on Canadian goods for three days, two hours before they were set to take effect Wednesday.
The Keystone XL project was first proposed in 2008 by TC Energy Corp. and ConocoPhilips (then TransCanada Corp.).
The Canadian Energy Board approved the project in 2010 with 22 conditions.
Barack Obama shut down the project in January 2012.
Trump vowed to revive the project in his 2016 campaign and signed an executive order in January 2017.
Construction began in April 2020; Biden cancelled the project in January 2021.
Biden's cancellation cited economic and environmental objectives.
Justin Trudeau expressed disappointment; Jason Kenney threatened legal action.
In February 2025, Trump posted about reviving the project; in October, Carney pitched it to Trump in exchange for tariff relief.
Alberta Liberal MP Corey Hogan confirmed the pipeline was leverage in trade talks.
Eric Ham analysis: pipeline could be a 'sticking point' for Trump; noted Trump's priority on oil and energy.
Framing: Focuses on the potential revival of the Keystone XL pipeline as a key element of the trade deal, with a backgrounder tone. — Explanatory and neutral, with a focus on the project's contested history and current trade leverage.
Facts Included:
Trump hinted at reviving the Keystone XL pipeline in a Truth Social post Tuesday night.
Trump suspended 50% tariffs on Canadian goods for three days, two hours before they were set to take effect Wednesday.
The Keystone XL project was first proposed in 2008 by TC Energy Corp. and ConocoPhilips (then TransCanada Corp.).
The Canadian Energy Board approved the project in 2010 with 22 conditions.
Barack Obama shut down the project in January 2012.
Trump vowed to revive the project in his 2016 campaign and signed an executive order in January 2017.
Construction began in April 2020; Biden cancelled the project in January 2021.
Biden's cancellation cited economic and environmental objectives.
Justin Trudeau expressed disappointment; Jason Kenney threatened legal action.
In February 2025, Trump posted about reviving the project; in October, Carney pitched it to Trump in exchange for tariff relief.
Alberta Liberal MP Corey Hogan confirmed the pipeline was leverage in trade talks.
Eric Ham analysis: pipeline could be a 'sticking point' for Trump; noted Trump's priority on oil and energy.
Framing: Focuses on the potential revival of the Keystone XL pipeline as a key element of the trade deal, with a backgrounder tone. — Explanatory and neutral, with a focus on the project's contested history and current trade leverage.
Facts Included:
Trump hinted at reviving the Keystone XL pipeline in a Truth Social post Tuesday night.
Trump suspended 50% tariffs on Canadian goods for three days, two hours before they were set to take effect Wednesday.
The Keystone XL project was first proposed in 2008 by TC Energy Corp. and ConocoPhilips (then TransCanada Corp.).
The Canadian Energy Board approved the project in 2010 with 22 conditions.
Barack Obama shut down the project in January 2012.
Trump vowed to revive the project in his 2016 campaign and signed an executive order in January 2017.
Construction began in April 2020; Biden cancelled the project in January 2021.
Biden's cancellation cited economic and environmental objectives.
Justin Trudeau expressed disappointment; Jason Kenney threatened legal action.
In February 2025, Trump posted about reviving the project; in October, Carney pitched it to Trump in exchange for tariff relief.
Alberta Liberal MP Corey Hogan confirmed the pipeline was leverage in trade talks.
Eric Ham analysis: pipeline could be a 'sticking point' for Trump; noted Trump's priority on oil and energy.
Framing: Focuses on the potential revival of the Keystone XL pipeline as a key element of the trade deal, with a backgrounder tone. — Explanatory and neutral, with a focus on the project's contested history and current trade leverage.
Facts Included:
Trump hinted at reviving the Keystone XL pipeline in a Truth Social post Tuesday night.
Trump suspended 50% tariffs on Canadian goods for three days, two hours before they were set to take effect Wednesday.
The Keystone XL project was first proposed in 2008 by TC Energy Corp. and ConocoPhilips (then TransCanada Corp.).
The Canadian Energy Board approved the project in 2010 with 22 conditions.
Barack Obama shut down the project in January 2012.
Trump vowed to revive the project in his 2016 campaign and signed an executive order in January 2017.
Construction began in April 2020; Biden cancelled the project in January 2021.
Biden's cancellation cited economic and environmental objectives.
Justin Trudeau expressed disappointment; Jason Kenney threatened legal action.
In February 2025, Trump posted about reviving the project; in October, Carney pitched it to Trump in exchange for tariff relief.
Alberta Liberal MP Corey Hogan confirmed the pipeline was leverage in trade talks.
Eric Ham analysis: pipeline could be a 'sticking point' for Trump; noted Trump's priority on oil and energy.
Each row is one claim, attributed to the outlet whose wording states it most clearly. Confidence rates how directly the source text states the claim — explicit and unhedged rates high; hedged, pieced-together, or internally inconsistent statements rate lower. It does not measure whether the claim is true. Status counts the distinct outlets we found asserting it — so a single-source claim can still show high confidence, and a multi-source claim can show medium. Every one of those outlets is named beside the status, so you can check the count against the list. For claims extracted before we began storing that list, the row says so: it names the outlet the claim is quoted from and states that we have not recorded which outlets backed it. Outlets wrote at different times, so a figure that evolves — a casualty count, for example — can legitimately differ between rows; check the "as of" time next to each claim's source.
Claim
Confidence
Status
ClaimUS President Donald Trump hinted that he may revive the Keystone XL pipeline project as part of a pending trade deal with Canada.
ClaimJustin Trudeau expressed disappointment over the Keystone XL cancellation and stated that his representatives were pressing the Biden administration to reconsider.
ClaimEric Ham noted that Trump has prioritized 'oil and energy' as a key component in his administration and in negotiations with Canada and other countries.
ClaimTensions have mounted between Canada and the US since Trump returned to office in January last year and unleashed a wide-ranging global programme of tariffs.
ClaimThe US has been asking Canada to remove retaliatory tariffs on American autos and adjust dairy quotas to allow greater access for US cheese producers.
ClaimIn the final hours before Wednesday's deadline, negotiators were discussing a deal to reduce US tariffs on Canadian autos from 25% to 15%, according to a Reuters report citing anonymous sources.
ClaimThe two countries could not agree on which vehicles would be eligible for tariff reductions, with the US pushing for it to only apply on cars with a high amount of American-made content.
ClaimOn Tuesday, the US Chamber of Commerce pushed for a deal, saying higher tariffs would damage both economies, drive up costs for US families, disrupt supply chains, and risk the 13 million American jobs that depend on trade under USMCA.
ClaimThe current Keystone pipeline, first proposed in 2005 and built between 2008 and 2010, runs from Hardisty, Alta., across Saskatchewan and Manitoba and before crossing the U.S. near Haskett, Man., into North Dakota, Illinois and Nebraska.
ClaimObama rejected the Keystone XL project in 2012 after U.S. legislators passed a bill in December 2011 that required the president to decide on the pipeline's future within 60 days.
ClaimThe Keystone XL project faced legal challenges over the next two years after Trump's executive order, with construction getting underway in April 2020.
ClaimTrump published an AI-generated image of himself hoisting the Keystone XL pipeline out of a gravesite marked by a tombstone labelled 'BURIED BY BIDEN.'
ClaimThe Keystone XL project has seen opposition from legislators and activists citing environmental concerns, lack of legal oversight and unconstitutional use of state law to review the routes.
ClaimObama argued that the 60-day deadline did not allow much time to review the new route but said TransCanada was free to submit another application.
ClaimThe project found favour in the Nebraska state government and a Republican-led U.S. Congress, but was repeatedly shot down through legal challenges and a veto from the Obama administration.