Trump Halts Canadian Tariffs, Closes in on Trade Deal

Sun Sep 27 2026 19:09:48 GMT+0000 (Coordinated Universal Time)

President Donald Trump postpones 50% tariffs on Canadian goods for three days, citing progress toward a trade agreement that could revive the Keystone pipeline.

U.S. President Donald Trump announced a three‑day pause on a set of 50% tariffs scheduled to hit Canadian imports, signaling serious progress toward a trade deal with Canada. The move follows back‑and‑forth negotiations over issues ranging from automotive tariffs to the Keystone XL pipeline. Trade negotiators say the pause is welcomed, although key points such as the exact list of eligible vehicles for tariff reductions and the status of the U.S. alcohol sales ban remain contentious.

U.S. President Donald Trump announced today a temporary pause on the 50% tariffs slated for Canadian goods, citing a close-to-finish trade deal with Canada.

The tariffs would have applied to roughly $20 billion (C$28 billion) of imports, including wine, dairy, cement, clothing and hockey equipment. Trump said he would put the tariffs on hold for three days pending finalization of trade documents.

The pause follows weeks of tense negotiations that reached a deadline set for August 19. In the final hours, negotiators discussed reducing U.S. tariffs on Canadian cars from 25% to 15%, though disagreement remains on which vehicles qualify.

Prime Minister Justin MacDonald and President Trump have exchanged messages, and the Canadian side says the pause will allow time to reconcile remaining issues such as the U.S. alcohol sales ban in several provinces.

Trump also hinted that a finalized agreement could revitalize the Keystone XL pipeline, which had been halted by the previous administrations. The pipeline would carry 830,000 barrels of oil a day from Alberta to the U.S., a project opposed by environmentalists and indigenous groups.

Canadian negotiators welcome the three‑day respite, warning that the proposed tariffs could hurt businesses on both sides of the border. U.S. trade officials state that any further tariffs could damage supply chains and job security under the United States‑Mexico‑Canada Agreement.

For now, both sides remain in talks with the aim of reaching a comprehensive deal by the summer deadline, with the U.S. demanding lower tariffs on Canadian autos, relaxed dairy quotas, and a lift on the alcohol sales ban.