Trump pauses 50% tariffs on Canada for three days

U.S. President Donald Trump announced late Tuesday, August 18, 2026, that he was pausing a planned 50 percent tariff on approximately $20 billion worth of Canadian goods for three days, just hours before the levies were set to take effect. The last-minute reprieve came after intense negotiations between Washington and Ottawa, with Trump declaring on his Truth Social platform that the two countries, "subject to the finalization of documents, have a DEAL!"

The tariffs, which were scheduled to kick in at 12:01 a.m. on Wednesday, August 19, would have targeted a broad range of Canadian exports including electronics, plastics, furniture, industrial machinery, paper products, and alcohol. Trump invoked Section 338 of the Tariff Act of 1930, a rarely used law that allows the president to impose duties up to 50 percent on imports from countries deemed to have discriminated against U.S. businesses. Unlike recent tariffs, these would not have provided exemptions for goods compliant with the US-Mexico-Canada Agreement.

Canadian Prime Minister Mark Carney confirmed that "substantial progress towards an agreement has been made" following a phone call with Trump on Tuesday afternoon, their...