Donald Trump pauses tariffs, says Canada, U.S. near trade ‘deal’

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With less than two hours to go before new tariffs were due to kick in on billions of dollars worth of Canadian exports, U.S. President Donald Trump announced a reprieve. Taking to his Truth Social account, the president made the brief announcement online at 10:15pm.

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Had a deal not been reached, some $28 billion worth of Canadian products — everything from hockey sticks to cement, alcohol to honey — would have faced 50% tariffs when the clock struck midnight.

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“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 posted.

He then went on to mention the return of the politically charged Keystone XL pipeline.

“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave! Thank you for your attention to this matter. President DONALD J. TRUMP”

The Keystone XL pipeline proposal has been a political hot potato for years, with then-President Barack Obama cancelling it after giving initial approval. The project was then resurrected by Trump in his first term, then killed off by Biden when he won the 2020 election.

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The Americans obtaining greater access to Canadian energy and critical minerals has been one of their key objectives, but it’s not clear if this pipeline proposal is part of the negotiated deal. While Keystone XL is still dead, there is a move to resurrect the already-built Canadian part of the project and connect it with new pipelines following a different route on the American side of the border.

https://twitter.com/MarkJCarney/status/2089917753620578567/photo/1

Talks to strike a deal ramped up last week.

Dominic LeBlanc, the point man for Prime Minister Mark Carney on the trade file, has spent most of the past nine days in Washington. He and chief negotiator Janice Charette have been in regular meetings with Trump’s chief negotiator Jamieson Greer.

Late Tuesday afternoon, a proposal was forwarded to the president for his consideration. The three-day pause on the new tariffs will allow the negotiations to continue. 

One of the key issues for Canada was autos. For the Americans, it was the booze ban enacted by eight of Canada’s 10 provinces. 

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Without real movement on lowering auto tariffs, it was unlikely Ontario Premier Doug Ford would agree to end his province’s ban on the sale of American alcohol. Ontario’s liquor authority, the LCBO, is the biggest purchaser of beverage alcohol in the world and has had a ban on American products since March 2025.

Despite alcohol not being a major export to Canada, the banning of booze sales by every province except Alberta and Saskatchewan has been a major irritant for the Americans.

Prime Minister Carney and President Trump spoke directly on both Monday and Tuesday as their respective teams worked toward a deal.

On Monday, Carney was asked to comment on the trade talks during a news conference. He declined, saying only that the coming days were crucial.

“We’ll have opportunities over the next 48 hours to discuss in more detail as the negotiations go forward, and I think that’s the best forum,” he said.

In the end, his patience may have won the day.

Now Carney’s job will be selling this to skeptical premiers like Ford, British Columbia’s David Eby and Quebec’s Christine Fréchette. He may also face a skeptical public wary of any deal with Trump after digesting “Elbows Up” rhetoric for more than a year.

For now, though, the businesses and communities that were facing a sharp hike in tariffs can breathe a sigh of relief.

blilley@postmedia.com

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