Trump pauses tariffs on Canadian imports, Carney says key work remains
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- Trump announced late Tuesday (Aug 18) a three-day pause on 50% tariffs set to hit Canadian goods at midnight, posting on Truth Social that the US and Canada had reached a deal pending document finalization.
- Mark Carney said in a statement that "substantial progress has been made" but "important work still remains," while Canada would continue building a "stronger, more independent" economy; the Canadian government did not confirm any agreement contents.
- The tariffs would have covered roughly US$20 billion in Canadian imports — spanning lumber, wine, and dairy — with trade experts and industry officials warning of job losses and business closures in vulnerable sectors.
- US Trade Representative Jamieson Greer said the deal would include "comprehensive market access for all American goods, economic security commitments, digital trade alignment," addressing US grievances over Canada's retaliatory tariffs, dairy supply management, and provincial liquor stocking.
- Negotiators discussed cutting Section 232 auto tariffs on vehicles to 15% from 25%, with further reductions tied to US content levels — a sticking point since Canada wanted all North American content counted while Washington demanded only US-produced parts qualify.
- Trump hinted the cancelled Keystone XL pipeline "may be awoken from the grave" without details, while the Commerce Department released new rules requiring automakers to re-certify American content by Sep 30 for deductions starting Dec 1.
Why it matters: Roughly $20 billion in Canadian imports — spanning lumber, wine, dairy, and autos — dodged an immediate hit, but the three-day window buys negotiating time rather than resolution: the content-counting dispute remains unresolved, automakers face a Sep 30 re-certification deadline for the new deduction cycle starting Dec 1, and broader USMCA renegotiation hangs in the balance.
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