US President Donald Trump has paused the planned imposition of 50 per cent tariffs on selected Canadian goods for three days, just hours before the deadline for the measures to take effect.
Trump announced the decision late Tuesday, saying the United States and Canada had reached a preliminary agreement that was awaiting final documentation.
He also suggested that the agreement could pave the way for the revival of the Keystone XL pipeline project.
Canadian Prime Minister Mark Carney, however, said significant work remained before a final agreement could be reached.
The US Trade Representative’s office said the proposed deal covers market access, economic security and digital trade alignment.
The temporary suspension affects tariffs on about $20 billion worth of Canadian exports, including wine, cement and hockey sticks.
Washington imposed the tariffs after accusing Canada of discriminatory treatment of US alcohol, automotive and dairy products.
In response, Canadian negotiators offered targeted concessions, including proposals to restock provincial shelves with American spirits.
Canada is also seeking broader relief from US tariffs affecting its automobile, steel, lumber and aluminium industries.
The three-day pause is expected to provide negotiators from both countries with additional time to finalise the proposed agreement and prevent further escalation of the trade dispute.
