According to Business-Today, the United States and Canada reached a last-minute deal on Tuesday to delay President Donald Trump's planned 50 per cent tariffs on $20 billion worth of Canadian imports, giving the two countries more time to negotiate a broader trade agreement. Trump was set to impose the tariffs from 12.01 a.m., but announced on social media that he had paused them after the two sides reached what he called a "DEAL", subject to finalising the documents as Canada and the US held last-minute talks.
Pause and scope
Business-Today reported that Trump said on Truth Social:
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 USA, subject to the finalization of documents, have a DEAL! The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!
— Donald Trump on Truth Social, as reported by Business-Today
The tariffs would have affected about 5 per cent of Canadian exports to the United States, hitting products ranging from hockey sticks to tongue depressors. Canada had threatened to retaliate, raising the prospect of another escalation between two of the world's closest trading partners, according to Business-Today.
Trade stakes by the numbers
Business-Today cited cross-border trade figures that underscore the exposure. The two countries exchanged about $880 billion worth of goods and services last year, while nearly 330,000 people and $2 billion worth of goods cross their shared border every day. Canada is particularly exposed, with nearly 72 per cent of its goods exports going to the US last year. Washington could also face higher prices if US importers pass tariff costs on to consumers.
| Metric | Value |
|---|---|
| Planned tariff rate | 50% |
| Value of Canadian imports targeted | $20 billion |
| Share of Canadian exports affected | ≈5% |
| Annual US-Canada goods and services trade | ≈$880 billion |
| Daily border crossings (people) | ≈330,000 |
| Daily goods crossing border | ≈$2 billion |
| Canadian goods exports to US (share) | ≈72% |
Section 338 and the demands
According to Business-Today, Trump had invoked Section 338 of the US Tariff Act of 1930 to impose tariffs of up to 50 per cent on Canadian goods, accusing Ottawa of discriminating against US exports including autos, alcohol and cheese. The provision has never previously been used.
The article reported that Washington has been seeking greater Canadian purchases of US military equipment, participation in its "Golden Dome" missile defence system and access to critical minerals. Ottawa, meanwhile, wants relief from existing US tariffs on Canadian steel, aluminium and softwood lumber.
- Washington's requests: greater Canadian purchases of US military equipment; Canadian participation in the "Golden Dome" missile defence system; access to critical minerals.
- Ottawa's request: relief from existing US tariffs on Canadian steel, aluminium and softwood lumber.
Negotiating context
Business-Today reported that the negotiations are unfolding alongside talks over the US-Mexico-Canada Agreement, the North American trade pact governing trade between the three countries. The latest dispute comes amid already tense US-Canada relations under Trump, who has repeatedly talked about making Canada the 51st US state.
For importers, exporters and customs brokers, the three-day pause means the planned 50 per cent duties on $20 billion of Canadian goods are temporarily suspended, but the underlying dispute remains unresolved: Washington's Section 338 tariff authority, its demands on military equipment, Golden Dome and critical minerals, and Ottawa's request for relief on steel, aluminium and softwood lumber all remain on the table alongside the broader USMCA talks.
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