President Donald Trump announced on Tuesday that the United States and Canada have reached a temporary agreement to delay new 50% tariffs on about $20 billion in Canadian goods. The pause gives negotiators three additional days to wrap up the details of the deal before the tariffs take effect. This move temporarily reduces tensions between two long-time trading partners. However, many of the key elements of the agreement are still under discussion.
Trump made the announcement on Truth Social late Tuesday night, according to Yahoo Finance. The proposed tariffs would apply to a range of Canadian products valued at about $20 billion. These include items such as hockey sticks, wine, and tongue depressors. The goods are part of what Canada exports to the United States each year.
Canadian Prime Minister Mark Carney confirmed that the two countries agreed to the delay. He said negotiators have made progress but there is still work to be done. Carney and Trump had spoken twice in the past two days before Tuesday’s call. The tariffs were set to target products including Canadian alcohol, dairy, and motor vehicle exports.
Canada has not yet confirmed all of the commitments that would be part of the deal. Trump has not provided many details about what will be included in the final agreement. However, he suggested that issues involving automobiles and farmers might be part of the deal.
The United States-Mexico-Canada Agreement was established during Trump’s first term and is now being renegotiated, according to a report from wcvb.com. Experts believe the threat of new tariffs may be used to gain negotiating leverage. Trump reportedly plans to use Section 338 of the Tariff Act of 1930. This law is from the Great Depression era and allows tariffs under certain conditions.
Earlier this year, the Supreme Court limited the president’s ability to impose tariffs under another trade law. Now, Trump is turning to other legal tools like Section 338 to enforce additional levies.
The tariffs would apply only to a subset of Canadian imports, not all goods. Trade policy analyst Alfredo Carrillo Obregon said the impact on prices would be limited. He added that consumers would not see widespread price increases due to this tariff action.
The delay comes just hours before the tariffs were scheduled to take effect, wmur.com reported. The products targeted include hockey sticks and tongue depressors. This shows that the tariff plan covers a wide range of goods from both consumer and industrial sectors.
The tariffs are being imposed under Section 338 of the Tariff Act of 1930. This is a rare use of the law by Trump for tariff enforcement. The Supreme Court recently limited presidential authority to impose tariffs under another trade law. This has pushed the administration toward using older legal tools like Section 338.
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