Trump pauses new tariffs on Canada and says countries close to a deal

Image source, Getty ImagesByNadine Yousif and Jessica MurphyPublished19 August 2026, 03:41 BSTUpdated 3 minutes agoUS President Donald Trump said he will delay imposing new tariffs on a wide array of Canadian goods for three days as the countries firm up a trade deal.

"I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" Trump said in a social media post.

The announcement came less than two hours before a 50% levy on nearly $20bn (C$28bn) of Canadian imports were set to go in place.

The two sides have been at an impasse on several issues, including US tariffs on autos and many Canadian provinces banning American liquor sales.

Trump and Prime Minister Mark Carney spoke twice this week, and trade negotiators have been engaged in intense talks since July, after Trump threatened the new levy with a deadline of 19 August.

"Substantial progress has been made, although there is important work still to be done," Carney said in a letter posted on X.

In his post, Trump also said a final trade deal could allow the revival of the Keystone XL pipeline. The oil pipeline, which would connect Alberta to the US, was blocked by both the Obama and Biden administrations.

Environmentalists and indigenous groups have long opposed the pipeline but Trump has said multiple times he would like to revive the project, which would carry 830,000 barrels of oil a day.

"The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" Trump wrote on Truth Social.

"The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment", the US Trade Representative posted on X.

It will also include "many important provisions that will continue to protect our market and American workers, along with our Canadian partners", it added.

The extension is welcome news for Canadian negotiators and for businesses on both sides of the border, who have warned that the new tariffs would be harmful to both countries.