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US President Donald Trump has suspended for three days a new 50 percent tariff on Canadian goods that was due to take effect on Wednesday, saying the United States and Canada had reached a deal, Reuters reported.
Trump announced the decision on Tuesday night after speaking with Canadian Prime Minister Mark Carney earlier in the day.
In a post on Truth Social, Trump said the suspension was granted on the condition that the two countries finalise the necessary documents.
The Canadian government did not immediately comment on the announcement or confirm that an agreement had been reached.
Trump also said the Keystone XL pipeline project, which was cancelled in 2021 under former President Joe Biden, could “rise from the grave”, without providing further details.
The call with Carney was the second conversation between the two leaders this week. The announcement followed weeks of intense and largely opaque negotiations between Washington and Ottawa.
Two industry sources familiar with the talks said existing US tariffs on imported automobiles were a key point of contention in the negotiations.
If imposed, the new US tariffs would have affected about $20 billion worth of Canadian goods. The tariffs would also have applied to Canadian products eligible for preferential treatment under the United States-Mexic
