Trump suspends new tariffs on Canada for three days

The United States has suspended the entry into force of 50 per cent tariffs on a range of Canadian products for three days, less than two hours before they were due to take effect. Donald Trump announced this in a post on his social media platform, Truth.

“Canada and the United States have reached an agreement!”, reads the post. According to a report on X by Washington’s Trade Representative, the agreement “will include full market access for all American goods, commitments on economic security, alignment of digital trade, and many important provisions that will continue to protect our market and American workers, together with our Canadian partners”. Canadian Prime Minister Mark Carney was more cautious, limiting himself to speaking of “substantial progress” in the negotiations, whilst adding that there was “still a great deal of work to be done” to reach a formal agreement.

Bilateral tariff negotiations have been underway for several weeks, shortly after Trump announced a new wave of trade measures targeting numerous countries. In the case of Canada, the new measures concern a range of imported goods such as dairy products, wine, cement and clothing, whilst metals and timber are currently subject to tariffs. The White House, however, is seeking the abolition of the measures adopted in response by Ottawa, such as the 25 per cent tariffs on American cars and the ban on the sale of US-produced spirits in force in many Canadian provinces.

In his post on Truth, the White House chief also mentioned the possible completion of the Keystone XL pipeline, an ambitious unfinished project that would link the United States with the Canadian province of Alberta, enabling the transport of 830,000 barrels of crude oil a day. “The great Keystone XL pipeline, killed off by Sleepy Joe Biden, will be resurrected from the grave,” wrote Trump.

The US Chamber of Commerce has nevertheless expressed optimism regarding the potential deal, declaring its support for reaching an agreement: “Higher tariffs would damage both economies, disrupt supply chains and jeopardise the jobs of thirteen million Americans employed in trade under the US-Mexico-Canada Agreement.”