US, Canada Reach Last-Minute Deal to Delay Tariffs

President Trump said Tuesday he was delaying the 50% US tariffs on $20 billion worth of Canadian imports after the two countries reached a last-minute deal hours before the sanctions were to go into effect, the AP reports. The announcement, which Trump made on his social media platform, buys time for more negotiations and avoids, for now, another strain in already tense relations between the historic allies. "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 posted on Truth Social less than two hours before the 12:01am Wednesday deadline.

If they had gone into effect as scheduled, Trump's import taxes would have hit Canadian products ranging from hockey sticks to tongue depressors. But the political impact would likely have been bigger than the economic one. Canada had threatened to retaliate against any new tariffs with levies of its own, aggravating a trade fight between countries that sold each other $880 billion worth of goods and services last year. Canadian Prime Minister Mark Carney and Trump had spoken twice by phone in the past two days about the ongoing negotiations, including a call Tuesday afternoon, Carney's office said, underscoring the last-minute push for a deal.