Trump announces pause on 50% tariffs after 'very fair' deal

US President Donald Trump announced late Tuesday that he was temporarily suspending 50% tariffs on Canadian imports for three days, after what he described as a 'very fair' trade deal with Canada. The tariffs, which were set to take effect Wednesday, were paused 'based on the fact that Canada and the USA, subject to the finalization of documents, have a DEAL,' Trump wrote on his Truth Social platform.

The announcement came after Canadian Prime Minister Mark Carney held what he described as 'intense' negotiations with Trump this week. Carney said in a statement that 'substantial progress has been made, although there is important work still to be done.'

Negotiators meet for third time as details remain murky

Trade negotiators met on Wednesday for the third time in as many days, as Canada and the US finalised a highly anticipated deal. US Trade Representative Jamieson Greer, standing alongside Canada's trade minister Dominic LeBlanc in Washington, said the Americans are 'very happy' with the latest discussions and will brief Congress and US stakeholders on the deal's details.

'We feel confident that we've reached an agreement that will not only continue to protect American workers, American jobs, American supply chains, but really strengthen the North American economy,' Greer said. He added that the deal eliminates 'some of the irritants' that the US has had with Canada.

Despite the optimistic tone from both leaders, details on what the agreement covers remain unclear. Neither US nor Canadian officials have confirmed the full contents of the agreement, and both sides have acknowledged that significant work remains.

Key concessions and sticking points

Trump said Canada has agreed to eliminate tariffs on US farmers, though he did not specify which agricultural sectors would benefit. Asked whether the US would reduce its own tariffs on Canada, Trump said 'by a little bit.'

According to reports, Canada sought reductions in US tariffs on steel, aluminium, automobiles, and lumber, while the US asked Canada to remove retaliatory tariffs on autos, adjust dairy quotas, and lift the ban on US alcohol sales imposed by most Canadian provinces. LeBlanc said Canada's dairy supply management system would remain 'entirely intact.'

The auto sector has been a sticking point in the talks, according to two unnamed industry sources. Reports indicated that US and Canadian officials discussed cutting US Section 232 tariffs on Canadian vehicles from 25% to 15%, and the Commerce Department released new rules for automakers to certify US content for tariff deductions.

Beef imports announced separately

In a separate move, Trump announced Friday that the US would allow up to 300,000 metric tons of ground beef to be imported over the next three months without out-of-quota tariffs. Trump said there is a commitment that this beef will be sold at 25% below market prices, though he did not specify which companies made that commitment.

The move comes as US beef prices have soared in 2026 due to drought, high feed costs, and herd liquidation. Trump said the deal 'will reduce prices for Americans while giving space for our Great American Beef Herd to grow again.'

Economic stakes and local impact

The new tariffs, had they taken effect, would have covered about US$20 billion worth of Canadian imports, according to multiple reports. The figure has also been cited as roughly C$28 billion, with some reports noting the levies would affect about 5% of Canada's annual exports to the US.

The economic stakes are high: nearly 72% of Canada's goods exports last year went to the US, and businesses on both sides of the border have warned of job losses and disruption to vulnerable sectors including lumber, wine, and dairy.

Uncertain path forward

Trump also said in his Truth Social post that the Keystone XL pipeline 'may be awoken from the grave,' a project that was canceled under his predecessor Joe Biden.

A Leger poll found that 56% of Canadians surveyed want Canada to take a hardline approach in trade negotiations with the US, while business organisations from both sides of the border urged for a deal. The postponed tariffs and the ongoing negotiations have left many questions unanswered, but both leaders have expressed confidence that a final agreement can be reached.