Trump pauses tariffs on Canadian imports
Careny says progress made, work still needed
By: Kanishka Singh
Promit Mukherjee
and Maria Cheng
Reuters
WASHINGTON - President Donald Trump announced late on August 18 [2026] he was putting a three-day pause on new 50% tariffs set to go into effect on Canadian goods at midnight, saying the two counties had reached a deal.
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An hour later, Canadian Prime Minister Mark carney said in a statement that "substantial progress has been made, although there is important work still to be done."
..... Trump said in his post on Truth Social that he paused the tariffs "based on the fact that Canada and the U.S.A, subject to the finalization of documents have a DEAL."
..... Trump and Carney spoke in the afternoon August 18, [2026] their second conversation this week, and their negotiators have been involved in weeks of intense opaque talks.
..... "While we continue this work, Canada remains forced on building a stronger, more independent and more competitive economy at home," Carney said in his statement.
..... U.S. Trade Representative Jamieosn Greer's office said the deal will include "comprehensive market access for all American goods, economic security commitments, digital trade alignment," and other provisions.
..... In a proclamation posted on the White House website, Trump said he had received Canada's commitment to address U.S. concerns related to duties on dairy products, alcoholic beverages and motor vehicles.
.... U.S. officials provide no further details and the Canadian government did not confirm any details.
..... Existing U.S. auto tariffs had been a sticking point, tow industry sources familiar with the talks said earlier.
..... The new U.S. tariffs would have covered about $20 billion worth of imports and applied regardless of whether Canadian goods qualify for preferential treatment under the U.S.-Mexico-Canada trade agreement, which has shielded much of Canadian industry from earlier U.S. tariffs.
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Trump added in his social media post that Keystone XL pipeline -a project canceled by former President Joe Biden in 2021 after years of indigenous and environmental opposition - "may be awoken form the grave," but did not provide details.
..... Trump has made tariffs a central pillar of his foreign and trade policies despite legal setbacks and criticism from some analysts.
..... Trade experts and industry officials said the new tariffs could lead to job losses and business closures in vulnerable sectors in Canada, including lumber, wine and diary. They also warned the dispute could complicate broader USMCA negotiations.
..... Canada's minister responsible for U.S. trade, Dominic LeBlkanc, and chief trade negotiator Janice Charette have been in Washingtonian since last week for talks.
..... On August 17, [2026] the Canadian officials met with Greer and Commerce Secretary Howard Lutnick.
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The sides have also discussed cutting U.S. Section 232 tariffs on Canadian vi chicles to 15% from 25%, with further reductions base on the amount of U.S. content in each vehicle, the sources had said.
..... A major point of content was how tariff deductions based o content should be calculated with Washington demanding that only U. S.-producted content be counted. Canada pushed for all North American content, including Canadian and Mexican parts, to be counted, sources had said earlier.
..... Earlier on August 18, [2026] the U.S. Commerce Department released new rules for automakers exporting from Canada and Mexico to certify their current levels of U.S., content for tariff deductions, reducing the complicated exercise to once per year from twice.