President Donald Trump has paused planned 50% tariffs on a range of Canadian goods for three days after announcing that the US and Canada have reached a preliminary trade deal.
The tariffs were scheduled to take effect on August 19, but Trump said the delay would allow both sides to finalize the necessary documents.
The measures targeted Canadian automobiles, dairy products, and alcohol, with the US accusing Canada of discriminatory trade practices in those sectors.
Trump also referenced the Keystone XL pipeline as part of the discussions, although he did not provide details about how the canceled project could be revived.
Canadian Prime Minister Mark Carney and US officials have been holding intensive negotiations in Washington, with issues including autos, dairy access, metals, lumber, and retaliatory tariffs remaining central to the talks.
While the new tariffs would directly affect only a relatively small share of Canadian exports to the US, the negotiations carry broader significance for trade relations between the two countries.
A successful agreement could also influence future negotiations over the US-Mexico-Canada Agreement, while a breakdown in talks could trigger another round of retaliatory tariffs and increase uncertainty for businesses on both sides of the border.