The United States will not enforce the 50 % tariffs on a range of Canadian products that were due to start just after midnight, after President Donald Trump said a trade deal was close to being finalised. In a Truth Social post on Tuesday evening, Trump wrote: “The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” and indicated the tariffs would be suspended for three days.
Trade talks and the tariff moratorium
Canada and the United States have reached a tentative agreement that would avert the steep duties on roughly $28 billion worth of Canadian exports. The levies would have affected items as diverse as hockey sticks, honey, wine and cement, and would also have kept in place existing tariffs on steel, aluminium, lumber and automobiles.
Prime Minister Mark Carney told reporters that the two sides had made “substantial progress” in negotiations, while warning that “important work still needs to be done.” He added that Washington had agreed to postpone the 50 % tariffs until the end of 21 August while talks continue.
Carney said he spoke with Trump by phone on Tuesday, hours before the tariffs were due to take effect. Ottawa’s negotiating team, led by Canada‑U.S. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette, was in Washington, D.C. at the time, seeking to finalise the deal.
Keystone XL pipeline references
Trump’s social‑media message also referenced the long‑controversial Keystone XL pipeline, which former President Joe Biden cancelled on his first day in office by revoking its permit. Earlier this year, Trump signed an executive order to revive parts of the project, although it is unclear how central the pipeline was to the trade discussions.
Following his post, a fabricated image circulated showing Trump slamming an illustration of the pipeline into the ground.
If the tentative agreement holds, Canadian producers will avoid the punitive duties and may also secure relief on existing tariffs that target key sectors such as steel, aluminium, lumber and autos. The exact terms of the deal remain undisclosed, and officials said further clarification would be provided in the coming days.
The announcement was first reported by The Canadian Press.