Trump Delays 50% Canada Tariffs as the Two Countries Race to Finalize a Deal

President Donald Trump welcomes Canadian Prime Minister Mark Carney outside the West Wing of the White House on Oct.

7, 2025, in Washington, D.C. —Anna Moneymaker––Getty Images President Donald Trump announced late Tuesday a temporary pause on 50% tariffs on Canada as both countries race to finalize a trade deal.

The President’s announcement came hours before a series of tariffs set to cover about $20 billion worth of imports into the U.S. from Canada were set to take effect.

“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 on social media.

Canadian Prime Minister Mark Carney released a statement moments later, confirming that there had been “intensive discussions” with the U.S. to “address outstanding trade issues.” “Substantial progress has been made, although there is important work still to be done,” he said.

Read More: Trump Imposes 50% Tariff Hike on Canadian Goods The tariffs will now be paused until Aug.

21, subject to the finalization of an agreement between the two countries.

U.S.

Trade Representative Jamieson Greer said the deal will include "comprehensive market access for ​all ⁠American goods, economic security commitments, digital trade alignment," along with other provisions.

Trump added in his social media post that the Keystone XL pipeline —a cross-border oil pipeline project between the U.S. and Canada that was canceled by former President Joe Biden in 2021 after pushback from environmentalists, Native American tribes, and Indigenous advocates—"may be awoken from the grave," but did not provide further details.

The President later posted what appeared to be an AI-generated image of himself dragging the Keystone pipeline out of the ground.

Neither side has provided further confirmation about the contents of the agreement.

TIME has reached out to both the White House and the Prime Minister's office for comment.

U.S. and Canada push toward a deal Carney said earlier this week that he planned to speak with the U.S.