US President Donald Trump has announced a three-day delay in imposing a 50% tariff on a wide range of Canadian imports, saying the United States and Canada have reached a preliminary trade deal pending the finalisation of documents.
The tariff, which was due to take effect on nearly $20 billion (C$28 billion) worth of Canadian goods, has been postponed following intensive negotiations between the two countries.
Trump said the potential agreement could also pave the way for the revival of the Keystone XL oil pipeline, a project previously blocked by the Obama and Biden administrations.
The United States and Canada remain divided over several trade issues, including tariffs on Canadian automobiles, Canada’s restrictions on US alcohol sales and access for American dairy products.
Trump and Canadian Prime Minister Mark Carney spoke twice this week, while trade negotiators have been engaged in intensive discussions since July.
The proposed tariffs would have affected Canadian products including wine, dairy, cement, clothing and hockey equipment, in addition to existing US tariffs on Canadian steel, aluminium, automobiles and lumber.
Negotiators were reportedly discussing reducing US tariffs on Canadian automobiles from 25% to 15%, although disagreements remained over which vehicles would qualify for the lower rate.
Canada is also facing pressure to remove retaliatory tariffs on US goods and lift provincial restrictions on American alcohol sales.
The delay has been welcomed by Canadian negotiators and businesses on both sides of the border, who have warned that higher tariffs could increase costs and disrupt supply chains.
Source: BBC
