Donald Trump pauses 50% tariffs on Canadian goods for three days

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U.S. President Donald Trump paused the planned rollout of punishing new tariffs on Canadian goods late Tuesday (August 18, 2026), as both sides indicated they were close to a broader trade agreement after weeks of talks.

Mr. Trump announced the three-day reprieve from 50% duties on select goods mere hours before a midnight deadline.

The delay was “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Mr. Trump wrote on his Truth Social platform.

Canadian Prime Minister Mark Carney was less definitive, saying “substantial progress has been made” towards a comprehensive trade deal, but “there is important work still to be done.”

Ottawa and Washington have held intense negotiations on revising their existing deal, the United States-Canada-Mexico Agreement (USMCA), which Mr. Trump signed and praised during his first term but now says needs to change.

The U.S. Trade Representative’s office said on X that the pact between Washington and Ottawa is set to “include comprehensive market access for all American goods, economic security commitments, digital trade alignment” and other provisions.

A proclamation by Mr. Trump to pause the duties added that the suspension came about as “Canada has expressed a commitment to remove the discriminations or unreasonable and unequal impositions at issue.”

Mr. Carney said the prospective deal aims to “address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families.”

Mr. Trump had signed orders for the 50% duties last month, with the White House alleging “discriminatory treatment” by Canada against U.S. alcohol, automobile and dairy products.

The new tariffs would cover products such as wine, hockey sticks and cement.

They target around 5.5% of Canada’s exports to the United States, worth about $20 billion, Oxford Economics estimates.

While this only poses a “modest” negative risk to Canada’s economy, Oxford Economics said in a recent report that the duties would “affect central Canada’s manufacturing sector much more severely.”

Canadian negotiators have been in Washington to push for a deal to avoid the new tariffs and also secure relief on Mr. Trump’s sector-specific duties, which have battered Canada’s auto, steel, lumber and aluminum industries.