Washington. US President Donald Trump has postponed for three days the decision to impose a proposed 50 percent additional tariff on goods worth about $20 billion imported from Canada. Trump said that significant progress has been made towards finalizing the trade agreement between the US and Canada.
Trump said on social media late Tuesday that he had put the proposed tariffs on hold for three days because an agreement had been reached between the two countries and the documents were yet to be finalized. However, Canadian Prime Minister Mark Carney said that significant progress has been made in the talks, but some issues still remain to be worked out.
The proposed US 50 per cent tariff would have affected many Canadian products, including wine, hockey equipment, lumber and other goods. These charges were to come into effect from Wednesday. This decision has averted an immediate conflict amid the ongoing trade dispute between the two countries.
In the same announcement, Trump also hinted at restarting the controversial ‘Keystone XL oil pipeline project’. He said the project could “come out of the grave,” though he did not clarify how restarting the pipeline would relate to a trade deal.
The purpose of the Keystone XL project was to transport crude oil from the Canadian province of Alberta to the United States. Its permit was canceled by then President Joe Biden in 2021. Trump has been a long-time supporter of this project.
Tension regarding trade between America and Canada has been going on for the last several months. There was growing concern among Canadian businesses about the proposed new tariffs, which could impact the already strong supply chains and trade between the two countries. Officials from both countries are now trying to finalize a comprehensive trade agreement.