Trump hits pause on 50% Canada tariffs, extends trade talks

President Donald Trump delayed planned 50% tariffs on nearly $20 billion worth of Canadian imports for three days after U. S. and Canadian negotiators reached what both sides described as a breakthrough. The 50% U. S. tariffs on Canadian goods were scheduled to go into effect at 12:01 a. m. ET on Wednesday.

Trump announced late Tuesday that the tariffs would be paused while negotiators finalize documents related to a tentative agreement between the two countries. “I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U. S. A.

, subject to the finalization of documents, have a DEAL!” Trump wrote on social media. The tariff threat targeted a broad range of Canadian products, including wine, dairy products, cement, clothing and hockey equipment. The proposed duties would have been added to existing U. S. tariffs on Canadian steel, aluminum, automobiles and lumber.

Canadian Prime Minister Mark Carney said “substantial progress has been made, although there is important work still to be done,” according to Time Magazine. Trade talks continued Wednesday in Washington, where Canada-U. S. Trade Minister Dominic LeBlanc was scheduled to meet with U. S.

Trade Representative Jamieson Greer in an effort to finalize an agreement and resolve outstanding trade disputes, CBC reported. The U. S. and Canada have been locked in negotiations for weeks over a series of trade disagreements, including U. S. tariffs on Canadian autos and retaliatory measures imposed by Canada.

Key issues include Canadian restrictions on U. S. liquor sales, dairy market access and retaliatory tariffs on American automobiles. One unresolved issue reportedly involves automobile tariffs. Reuters reported that negotiators had discussed reducing U. S.

tariffs on Canadian autos from 25% to 15%, but disagreements remained over which vehicles would qualify for the lower rate and how much U. S. -made content they would be required to contain.

Why it matters: Canada is one of the United States’ largest trading partners, and a 50% tariff escalation could have increased costs and disrupted freight flows across North America’s integrated manufacturing, automotive and supply chain networks. The post Trump hits pause on 50% Canada tariffs, extends trade talks appeared first on FreightWaves.