U.S. President Donald Trump has suspended the imposition of 50% tariffs on Canadian goods for three days, saying Ottawa accepted Washington's demands in a late-night call after the measures were set to take effect on Wednesday. Trump described the emerging framework as "very fair" for both countries following talks with Prime Minister Mark Carney.
The tariffs, announced in July, targeted roughly $20 billion in Canadian imports including wine, hockey sticks and cement. U.S. Trade Representative Jamieson Greer said the deal under negotiation includes better Canadian market access for U.S. products, economic security commitments and alignment on digital trade. According to Reuters, the agreement would lower base tariffs on Canadian vehicles to 15% and on steel and aluminium to 25%.
Carney cited "significant progress" while noting much work remains. Trump also suggested the Keystone XL pipeline could be revived.