US delays 50% tariffs on Canadian imports following last-minute deal

Trump confirmed the tariff delay through a social media post on Tuesday evening, just under two hours before the midnight deadline when the duties were scheduled to commence. "I have paused the 50 per cent Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the USA., subject to the finalization of documents, have a DEAL!" the US president stated. The three-day window is intended to allow both countries to complete documentation and finalize terms of their agreement.

The proposed tariffs would have impacted approximately 5 per cent of Canada's annual exports to the United States, covering a diverse range of products including manufactured goods and consumer items. While the economic impact of such duties would have been significant, the political ramifications of escalated trade tensions between the historic allies were expected to extend beyond immediate financial measures.

The tariff dispute has been a point of contention in US-Canada relations in recent months. Trump's decision to pause the implementation reflects ongoing negotiations between the two North American partners, with the three-day period offering a critical window for officials to resolve outstanding issues and avoid a broader trade confrontation.