Trump pauses 50% Canada tariffs for 3 days, one day before they were set to take effect

President Donald Trump announced Tuesday (local time) that he would suspend for three days the 50% tariffs on Canadian products, just one day before they were set to take effect.

Trump posted on Truth Social late Tuesday evening Eastern time that he had "temporarily paused" the 50% tariffs on Canada that had been set to take effect "starting tomorrow morning." He said the pause came "because Canada and the United States have reached an agreement, subject to the finalization of documents," and added that the Keystone XL pipeline — "killed long ago by 'Sleepy' Joe Biden" — "could be rising from the dead."

Earlier, Trump had announced last month that he would impose 50% tariffs on Canadian imports, accusing Canada of trade discrimination against American products in the automotive, alcohol and dairy industries. The tariffs had been set to take effect Wednesday (local time) and would have directly affected $20 billion worth of Canadian goods exported to the United States.

Canadian Prime Minister Mark Carney spoke with Trump for two consecutive days in a last-ditch effort to persuade him to hold off on the tariffs, according to sources.

The Keystone XL project Trump referenced in his Truth Social post is a pipeline stretching 1,931 kilometers from Alberta, Canada, to Nebraska. The project drew fierce opposition from environmental groups over pollution concerns, and former President Barack Obama blocked it in November 2015 on environmental grounds. Trump revived it through an executive order in January 2017 during his first term, but former President Joe Biden halted it immediately upon taking office in 2021. TC Energy, the pipeline's operator, subsequently withdrew from the project. Trump has now suggested that trade negotiations with Canada could bring the joint energy project back to life.