OTTAWA – Canada has temporarily dodged 50 per cent tariffs on roughly $28-billion worth of goods after U.S. President Donald Trump announced late Tuesday he would delay the levies for three days.
The new wave of tariffs was set to hit Canada just after midnight today.
“I have paused the 50% Tariffs against Canada … based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump said on social media.
The president pointed to the Keystone XL pipeline in his initial social media post, followed by a fictional image of him slamming an illustration of the pipeline into the ground.
The United States Trade Representative said on social media the deal will include comprehensive market access for all American goods, economic security commitments and digital trade alignment.
Prime Minister Mark Carney said in a statement after Trump’s post that “substantial progress” has been made and that more work remains.
“While we continue this work, Canada remains focused on building a stronger, more independent, and more competitive economy at home,” he said.
The prime minister’s statement did not mention the Keystone XL pipeline project.
Candace Laing, president and CEO of the Canadian Chamber of Commerce, said in a statement Tuesday that the tariff delay provides some relief on both sides of the border.
She said an extension doesn’t bring the certainty of a signed interim deal.
“This limbo state is not anyone’s preferred outcome — time is of the essence,” said Laing.
“We commend the negotiating team for their work and sense of urgency this week, and call on them to keep it up: ultimately, a resilient and integrated North American economy would be a stronger one for all.”
Dan Kelly, president and CEO of the Canadian Federation of Independent Business, said on social media Tuesday that if the U.S. removes the 50 per cent tariff threat and approves the Keystone XL pipeline, those are “two big moves in the right direction and will provide needed short term relief to many small firms.”
“But we need to see if progress was made on the existing sectoral tariffs (steel, aluminum, lumber, autos) to fully evaluate any overall interim deal,” he said.
Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said the organization appreciates Trump wanting to restore access for American spirits products across Canada.
Several Canadian provinces pulled American booze from store shelves last year after Trump imposed tariffs. The bans on U.S. liquor remain in place in eight.
“These provincial bans have caused exports of American spirits to drop by more than 70 per cent, leaving American distillers caught in the middle of a broader trade dispute,” said Swonger in a statement.
“As discussions continue over the next few days, we encourage leaders on both sides of the border to reach a negotiated solution that gets American spirits back on retail shelves in all Canadian provinces and returns the spirits sector to a zero-for-zero tariff framework.”
Former president Joe Biden signed an executive order to revoke the permit for the Keystone XL pipeline, which would have transferred oil from Alberta to Nebraska, over long-standing climate change concerns.
Trump returned to office set on changing that decision. Earlier this year, he signed an executive order for permits to revive parts of the Keystone project.
It’s not clear how much of the trade talks between Canadian and American officials focused on the energy project. Carney spoke with Trump by phone Tuesday, hours before the U.S. was to bring in the punishing tariffs.
The 50 per cent levies would have targeted a range of Canadian goods from hockey sticks and honey to wine and cement.
Top trade officials from Ottawa had been in Washington to hammer out a deal with American counterparts to stop the tariffs from being imposed.
Canadian officials were also looking to see relief on existing tariffs that target steel, aluminum, lumber and autos.
This report by The Canadian Press was first published Aug. 19, 2026.
