Amid deepening trade tensions between the US and Canada, US President Donald Trump decided to postpone the imposition of 50% punitive tariffs on Canada by three days, just hours before the deadline. The massive tariffs were to be imposed by the Trump administration on approximately $20 billion worth of Canadian goods—such as wine, automobile parts, dairy products and sporting equipment. The charge was scheduled to come into effect at 12:01 am on Wednesday, but was put on hold late Tuesday following a phone conversation between the two parties. Trump's claim of a big deal and mention of the Keystone Pipeline. Sharing the information on his social media platform 'Truth Social', Trump claimed that a deal has been reached between the US and Canada on the condition of finalizing the documents. Trump indicated in his statement that the popular Keystone XL Pipeline project, which had been stalled for years, could also be restarted. According to the Office of the US Trade Representative (USTR), the agreement includes broader market access for American products, economic security commitments and digital trade synergy. Has Canadian Prime Minister Mark Carney completely agreed? After Trump's claim of a one-sided deal, Canadian Prime Minister Mark Carney issued a statement clarifying the situation. Carney did not say whether the entire deal had been finalized. He said that between the negotiation teams of the two countries "considerable progress" Substantial progress has been made, but work still remains to be completed on many important issues. Carney confirmed that 3 days have been taken only to take the talks forward and prepare the documents. Along with this, he stressed that Canada will continue to give priority to building a strong, independent and competitive economy. What will happen next between the two countries? More than 70% of Canada's exports go to the US, so this tariff could have been a huge blow to Canadian industries. However, Mark Carney is adamant on protecting domestic sovereignty and the interests of the dairy-automobile sector. During this three-day period, negotiators from both the countries are trying to reach an agreement on the final draft. If the documents are not signed within this stipulated period, the threat of tariffs could loom again.
