Politics · India Bureau
US, Canada announce trade deal as Trump pauses tariff threat
President Donald Trump has announced a trade agreement with Canada and postponed threatened 50 per cent tariffs on Canadian imports, though key terms of the deal remain undisclosed. The pause, set to last three days, gives negotiators until Saturday to finalize documentation.
LSN India ·
Trump announced the provisional agreement late Tuesday via social media, halting a scheduled tariff on approximately USD 20 billion worth of Canadian goods that was set to take effect within two hours. Speaking to journalists at the White House on Wednesday, Trump characterized the deal as "very fair for both" sides, stating that American farmers and manufacturers would benefit from the arrangement.
However, significant details of the agreement remain opaque. Trump acknowledged that the deal is contingent upon "finalization of documents," indicating negotiations are ongoing. The tariff pause extends until 12:01 am Saturday, providing a narrow window for both nations to conclude talks and formalize the accord.
Canadian Trade Minister Dominic LeBlanc returned to Ottawa on Wednesday to brief Prime Minister Mark Carney, who scheduled Cabinet meetings and virtual discussions with provincial and territorial leaders to address the developing situation. The Canadian government's rapid response underscores the stakes involved in trade negotiations between the two neighbouring economies.
The agreement represents a reversal of Trump's earlier threat to impose the punitive tariffs, which would have significantly impacted cross-border commerce. Analysts await clarification on the deal's specifics, including provisions affecting key sectors and bilateral trade mechanisms.