US President Donald Trump postponed for three days the introduction of 50% tariffs on Canadian goods, which were due to take effect on August 19, saying that an agreement had been reached between Washington and Ottawa. Trump wrote this on the Truth Social social network, the BBC reports, according to UNN.
Details
I have suspended for three days the 50% tariffs on Canada that were due to take effect tomorrow morning, based on the assumption that Canada and the United States, subject to the completion of the paperwork, have reached a deal!
The tariffs were to apply, in particular, to dairy products, alcohol and furniture. According to CNN, these categories account for about 5% of the total value of US imports from Canada last year.
Trump mentioned the construction of an oil pipeline
In his post, Trump also mentioned the Keystone XL oil pipeline construction project, saying that it "may rise from the dead." In 2021, then-US President Joe Biden revoked the permit to build the pipeline.
The day before, Trump held talks with Canadian Prime Minister Mark Carney. The contacts took place on Monday and Tuesday. Carney described the talks as "very delicate and tense."
To introduce the tariffs, the Trump administration planned to use a little-known law enacted in the United States in the 1930s. This law had not previously been used to impose tariffs. It was expected that the White House decision could face legal challenges; however, until a court ruling is issued, Trump may continue to use this mechanism.
The postponement gives the United States and Canada three days to complete the formalization of the agreements announced by Trump. The further fate of the 50% tariffs will depend on the completion of negotiations and the formalization of the relevant documents.