- US and Canada have reached a last-minute deal to delay steep tariffs on billions of dollars of Canadian goods, granting a temporary reprieve to exporters fearful of a renewed trade war between the trade partners.
- Trump announced the deal shortly before the 50-percent duty was due to take effect at midnight.
- Canadian Prime Minister Mark Carney confirmed shortly afterwards that the US had agreed to suspend the tariffs until August 22.
- The tariffs would have applied to some $20.2bn worth of Canadian exports, affecting goods ranging from electronics and industrial machinery to furniture, dairy products and wine.
- Trump stated he agreed to a three-day pause in the tariffs after the sides reached a deal 'subject to finalization of documents'.
- Trump announced the tariffs last month in response to Ottawa’s 'discriminatory treatment' of US automobiles, dairy products and alcoholic drinks.
- These proposed tariffs are notable for applying to goods that qualify for duty-free treatment under the United States-Mexico-Canada Agreement.
The United States and Canada have reached a last-minute deal to delay steep tariffs on $20.2 billion of Canadian goods, averting a potential trade war.
President Trump announced the agreement shortly before the 50-percent duty was set to take effect at midnight.2
Canadian Prime Minister Mark Carney confirmed that the US had agreed to suspend the tariffs until August 22. The tariffs would have impacted a wide range of goods, including electronics, industrial machinery, furniture, dairy products, and wine.
In a post on Truth Social, Trump stated he agreed to a three-day pause in the tariffs after both sides reached a deal 'subject to finalization of documents'.5
The tariffs were initially announced in response to what Trump described as Ottawa's 'discriminatory treatment' of US products, including automobiles and dairy.
Notably, these proposed tariffs would have applied to goods that qualify for duty-free treatment under the United States-Mexico-Canada Agreement, highlighting the complexities of the trade relationship between the two nations.
“The deal grants a temporary reprieve to exporters, as the tariffs would have impacted a wide range of Canadian exports, including electronics and dairy products. Trump stated the agreement includes a three-day pause in the tariffs, pending finalization of the necessary documents.”
