President Donald Trump paused sweeping tariffs on Canadian goods late Tuesday, just before the duties were set to take effect at midnight. The decision followed a phone call with Canadian Prime Minister Mark Carney and was a sudden shift in an escalating trade dispute.
Donald Trump says he’s pausing 50% scheduled tariffs on Canada
Trump announced the reversal on Truth Social, writing that the decision was “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” The post offered no details on the agreement’s terms.
The tariffs would have covered roughly $20 billion in Canadian imports, including hockey sticks and wine. The White House introduced the measures last month under Section 338 of the Tariff Act of 1930, citing Canadian trade barriers in the motor vehicle, alcohol and dairy sectors.
Canadian small business owners had warned the tariffs would devastate cross-border sales. Dan Kelly, president of the Canadian Federation of Independent Business, told CNBC that a 50% tariff “essentially makes a product uneconomic to sell into a particular market.” Further, members reported U.S. buyers pausing orders ahead of the expected duties. His organization represents 103,000 businesses across Canada.
The president had already placed tariffs on Canadian metals, lumber and auto parts. The Supreme Court struck down separate drug-trafficking tariffs in February. However, the Section 338 tariffs stood apart because they targeted consumer goods rather than industrial materials. Kelly noted they “really strike at the heart of small business trade between Canada and the United States.”
The U.S. Chamber of Commerce also criticized the move. Neil Herrington, senior vice president for the Americas, said higher tariffs “would damage both economies, drive up costs for U.S. families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade” under the USMCA.
Additionally, Trump also floated reviving the Keystone XL pipeline in his Truth Social post, suggesting it could be “awoken from the grave!” President Joe Biden revoked the project’s permits in 2021.
Originally reported by Devanshi Basu on Mandatory.
