President Trump has paused a planned 50% tariff on Canadian goods for three days after officials reached a preliminary deal, and suggested the long-dormant Keystone XL oil pipeline could return.
Key facts
- Trump delayed a 50% US tariff on Canadian goods by three days.
- The tariff would have affected $20bn worth of goods.
- Canada reached a Tuesday evening agreement with Trump officials, hours before the hike was set to take effect.
- Trump said a deal had been reached, subject to finalization of documents.
- Trump suggested the Keystone XL oil project 'may be awoken from the grave.'
Canada has temporarily avoided a steep 50% US tariff after reaching a preliminary agreement with Trump administration officials, according to the Guardian. The deal came together on Tuesday evening, just hours before a planned tariff hike was set to take effect.
President Trump announced the pause in a late Tuesday social media post, saying he had delayed the tariffs for three days “based on the fact that Canada and the USA, subject to the finalization of documents, have a DEAL!”
The tariff increase would have affected an estimated $20bn worth of goods, the Guardian reported. The three-day delay gives both sides time to finalize the paperwork behind the agreement.
Alongside the tariff news, Trump hinted at the possible revival of the contentious Keystone XL oil pipeline project, saying it “may be awoken from the grave.” The project has long been a point of controversy between energy interests and environmental campaigners.
The Guardian described Keystone XL as a contentious oil project, reflecting the long-running debate over cross-border pipeline infrastructure between the United States and Canada.
The developments mark a significant, if temporary, easing of trade tensions between the two neighbours, with the finalization of documents still pending at the time of Trump’s announcement.
Why it matters
Tariffs on $20bn of goods would have raised costs for businesses and consumers on both sides of the border, so the pause offers short-term relief while negotiations continue. A potential revival of the Keystone XL pipeline could reshape North American energy politics and reignite a long-standing environmental debate.
Frequently asked questions
How long is the tariff pause?
According to the Guardian, Trump delayed the 50% tariffs for three days, subject to the finalization of documents on a deal between Canada and the United States.
How much in goods would the tariffs have affected?
The Guardian reported the tariff hike would have affected $20bn worth of goods.
What did Trump say about Keystone XL?
Trump suggested the contentious Keystone XL oil pipeline project 'may be awoken from the grave,' hinting at its possible revival.