{"id":3730,"date":"2026-08-19T08:29:58","date_gmt":"2026-08-19T08:29:58","guid":{"rendered":"https:\/\/blog.cedritech.com\/?p=3730"},"modified":"2026-08-19T08:29:58","modified_gmt":"2026-08-19T08:29:58","slug":"50-tariffs-on-canadian-goods-paused-as-trump-and-canada-reach-last-minute-deal","status":"publish","type":"post","link":"https:\/\/blog.cedritech.com\/?p=3730","title":{"rendered":"50% tariffs on Canadian goods paused as Trump and Canada reach last-minute deal"},"content":{"rendered":"<p class=\"mb-4 text-lg md:leading-8 break-words\">A suite of new tariffs on Canadian goods have been paused for three days in ongoing talks between the US and Canadian teams, with the announcement made by President Trump on\u00a0Truth Social\u00a0just hours before the tariffs were due to come into effect.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;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 U.S.A., subject to the finalization of documents, have a DEAL!&#8221; wrote the president at 10:15 pm before the midnight deadline.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Trump referenced the Keystone XL pipeline as a reason for the last-minute tariff abatement. No further details were given on how and when plans for the canceled oil pipeline were to be resurrected.<\/p>\n<div class=\"max-md:faux-bleed mb-4 bg-accent\/2 pb-5 md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\"><\/div>\n<div class=\"flex w-full flex-nowrap justify-center\"><\/div>\n<\/div>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">President Trump and Canadian Prime Minister Mark Carney spoke earlier in the week without a breakthrough, as the 11th-hour talks are expected to continue. The Canadian negotiating team remained in Washington on Tuesday after\u00a0staying in the US through the weekend\u00a0for talks.<\/p>\n<div class=\"mb-4\"><\/div>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Last month,\u00a0Trump announced plans for 50% tariffs\u00a0on a range of Canadian goods in response to what the US claims are discriminatory trade practices around\u00a0automobiles,\u00a0alcohol, and\u00a0dairy\u00a0products, with proclamations promising new tariffs &#8220;effective as of 12:01 am eastern time on August 19, 2026.&#8221;<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The new tariffs could have limited immediate macroeconomic effects, as only about 5% of Canadian goods that the US imported last year would see the new duties. An analysis from Veda Partners calculated that the average tariff rate on Canadian exports would rise to 6.27% from 4.68%.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Yet success or failure in the talks this week could provide a major signal about the prospects for renewal of the US-Mexico-Canada Trade Agreement (USMCA).<\/p>\n<figure class=\"relative mb-4\">\n<div class=\"relative\"><img loading=\"lazy\" decoding=\"async\" class=\"rounded-lg\" src=\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/1f0b587252a9c1fe99070e74e2efa8f4e261afecc07b8388ef1837bd50d12f93\/lightyear_networkapi\/resizefill_w960%3Bquality_80%3Bformat_webp\/https%3A%2F%2Fd29szjachogqwa.cloudfront.net%2Fimages%2F2026-08%2F6b9f5c39-22f2-4cef-a13b-e34637b787d0\" alt=\"President Trump is seen in the Oval Office of the White House on Monday. (Jim Watson\/AFP via Getty Images)\" width=\"960\" height=\"640\" data-nimg=\"1\" \/><button class=\"group absolute bottom-0 size-full\" aria-label=\"View larger image\" data-ylk=\"elm:expand;itc:1;sec:image-lightbox;slk:lightbox-open;\" data-rapid_p=\"15\" data-y-link-id=\"1xz0hdw1e49tw101rmxb\" data-v9y=\"1\"><\/button><\/div><figcaption class=\"relative text-sm mt-1 pr-2.5\">\n<div>\n<p>President Trump is seen in the Oval Office of the White House on Monday. (Jim Watson\/AFP via Getty Images)<\/p>\n<\/div>\n<\/figcaption><\/figure>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Carney described the talks to reporters Monday as &#8220;very intense and delicate.&#8221; A meeting in Washington on Monday ended with Canada&#8217;s Trade Minister Dominic LeBlanc\u00a0telling reporters that\u00a0&#8220;our job is not yet done.&#8221;<\/p>\n<div class=\"max-md:faux-bleed mb-4 bg-accent\/2 pb-5 md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\"><\/div>\n<div class=\"flex w-full flex-nowrap justify-center\"><\/div>\n<\/div>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">US Trade Representative Jamieson Greer has offered little insight into the US position,\u00a0telling reporters in Iowa last week\u00a0that talks have been constructive, but &#8220;there are a lot of issues.&#8221;<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">&#8220;My sense is the Canadians want to have a more conciliatory approach, but we&#8217;ll see,&#8221; Greer added.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\"><em>Read more:\u00a0<\/em><em>5 ways to tariff-proof your finances<\/em><\/p>\n<h2 id=\"a-search-for-concessions-on-both-sides\" class=\"mb-4 text-xl font-bold md:text-2xl\" data-jump-link-target=\"\">A search for concessions on both sides<\/h2>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The talks have so far centered on concessions, including the US potentially lessening duties on Canadian metals, lumber, and auto components in return for changes to Canadian market access to US goods, such as dairy products, and a reduction of retaliatory tariffs.<\/p>\n<div class=\"max-md:faux-bleed mb-4 bg-accent\/2 pb-5 md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\"><\/div>\n<div class=\"flex w-full flex-nowrap justify-center\"><\/div>\n<\/div>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">But the talks have been tense. Greer described Canada&#8217;s retaliation against US tariffs last week as &#8220;the kind of things that China would do.&#8221; The Trump team often notes that only Canada and China have retaliated against Trump&#8217;s new tariffs during his second term.<\/p>\n<figure class=\"relative mb-4\">\n<div class=\"relative\"><img loading=\"lazy\" decoding=\"async\" class=\"rounded-lg\" src=\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/1749877b24c77d62f66936e38370a23dddc049c6cf40573f4687a1c2fbaad3a2\/lightyear_networkapi\/resizefill_w960%3Bquality_80%3Bformat_webp\/https%3A%2F%2Fd29szjachogqwa.cloudfront.net%2Fimages%2F2026-08%2Fdfdb40b5-cfb7-4711-a4c5-fd6952b5062a\" alt=\"The Canadian minister responsible for Canada-U.S. relations, Dominic LeBlanc, and Canada's chief trade negotiator to the United States, Janice Charette, speak to the media at the Embassy of Canada in Washington, D.C., U.S., June 2, 2026. REUTERS\/Anna Rose Layden\" width=\"960\" height=\"640\" data-nimg=\"1\" \/><button class=\"group absolute bottom-0 size-full\" aria-label=\"View larger image\" data-ylk=\"elm:expand;itc:1;sec:image-lightbox;slk:lightbox-open;\" data-rapid_p=\"19\" data-y-link-id=\"0hlabyu042z3ha1luqnl\" data-v9y=\"1\"><\/button><\/div><figcaption class=\"relative text-sm mt-1 line-clamp-2 pr-2.5\">\n<div>\n<p>The Canadian minister responsible for Canada-U.S. relations, Dominic LeBlanc, and Canada&#8217;s chief trade negotiator to the United States, Janice Charette, speak to the media at the Embassy of Canada in Washington in June. (REUTERS\/Anna Rose Layden)<\/p>\n<\/div>\n<\/figcaption><\/figure>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">One flash point: Canadian restrictions on US wines and liquors, though there is some optimism that a deal could return a significant number of US spirits to Canadian shelves.<\/p>\n<div class=\"mb-4\">\n<div id=\"recirc-e92ff192-9033-4457-8686-72896900c50c\" class=\"mb-4\">\n<div class=\"mb-3.5 flex items-center gap-2\"><\/div>\n<div class=\"grid gap-4 lg:grid-cols-2 lg:grid-rows-[auto_auto_1fr]\">\n<div class=\"relative w-full\">\n<div id=\"_r_j4_\" class=\"absolute inset-0 rounded-[4px] focus-within:ring-2 focus-within:ring-link trc_related_container tbl-trecs-container trc_spotlight_widget trc_elastic trc_elastic_stream-i-v3\" data-placement-name=\"taboola-article-center\">\n<div class=\"trc_rbox_container\">\n<div>\n<div id=\"trc_wrapper_518146200\" class=\"trc_rbox stream-i-v3 trc-content-sponsored\">\n<div class=\"trc_clearer\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Canadian officials\u00a0have expressed cautious optimism\u00a0that a deal can be struck, even as people familiar with the talks\u00a0told Bloomberg\u00a0this week that the auto sector remains a key sticking point.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The tariffs, if they go forward, are set to be levied under a never-before-used section of Section 338 of the Tariff Act of 1930, which allows tariffs of up to 50%.<\/p>\n<div class=\"max-md:faux-bleed mb-4 bg-accent\/2 pb-5 md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\"><\/div>\n<div class=\"flex w-full flex-nowrap justify-center\"><\/div>\n<\/div>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Neil Herrington, a senior vice president at the Canadian Chamber of Commerce, warned in a new statement Tuesday that &#8220;the introduction of higher tariffs would damage both economies, drive up costs for U.S. families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the U.S.-Mexico-Canada Trade Agreement.&#8221;<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\"><em>Read more:\u00a0<\/em><em>What Trump&#8217;s tariffs mean for the economy and your wallet<\/em><\/p>\n<figure class=\"relative mb-4\">\n<div class=\"relative\"><img loading=\"lazy\" decoding=\"async\" class=\"rounded-lg\" src=\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/ecf3743bc2694e4dea41d5d67525ed83131b3a21a6a66bef1b86f3e8cd8393e2\/lightyear_networkapi\/resizefill_w960%3Bquality_80%3Bformat_webp\/https%3A%2F%2Fd29szjachogqwa.cloudfront.net%2Fimages%2F2026-08%2Fabf68fcd-2190-4960-912c-7b2ce552e560\" alt=\"Canadian Prime Minister Mark Carney speaks next to Quebec Premier Christine Frechette at the announcement of a Quebec-Newfoundland hydro agreement in St. John's, Canada, August 17, 2026.  REUTERS\/Greg Locke\" width=\"960\" height=\"642\" data-nimg=\"1\" \/><button class=\"group absolute bottom-0 size-full\" aria-label=\"View larger image\" data-ylk=\"elm:expand;itc:1;sec:image-lightbox;slk:lightbox-open;\" data-rapid_p=\"23\" data-y-link-id=\"17pgm1218mynhv0hoe03\" data-v9y=\"1\"><\/button><\/div><figcaption class=\"relative text-sm mt-1 line-clamp-2 pr-2.5\">\n<div>\n<p>Canadian Prime Minister Mark Carney speaks next to Quebec Premier Christine Frechette at the announcement of a Quebec-Newfoundland hydro agreement in St. John&#8217;s, Canada, on Monday. (Reuters\/Greg Locke)<\/p>\n<\/div>\n<p><button class=\"mt-1 bg-primary text-sm text-link ml-2 absolute bottom-0 right-0 before:content-['...']\" data-ylk=\"elm:loadmore;itc:1;sec:content-canvas;slk:more;\" data-yga=\"{&quot;yLinkElement&quot;:&quot;expand&quot;}\" data-y-link-id=\"0e5aco51hrjbej021lyz\" data-rapid_p=\"32\" data-v9y=\"1\"><\/button><\/figcaption>Fears of &#8216;reigniting a tit-for-tat trade war&#8217;<\/figure>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Beyond affecting short-term tariff rates, any areas of agreement (or lack thereof) that emerge from the current talks could send signals about future negotiations on the USMCA, which\u00a0was not renewed in July.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">That landmark trade agreement is in a sort of limbo that could stretch for months or even years. The pact has now entered a period of annual reviews and will expire completely on July 1, 2036, if a new agreement isn&#8217;t reached.<\/p>\n<div class=\"max-md:faux-bleed mb-4 bg-accent\/2 pb-5 md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\"><\/div>\n<div class=\"flex w-full flex-nowrap justify-center\"><\/div>\n<\/div>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Indeed,\u00a0an analysis from Capital Economics this week\u00a0warned that a lack of a deal could have significant short-term effects for the Canadian economy and &#8220;also risks stalling [USMCA] renegotiations by reigniting a tit-for-tat trade war, hurting business confidence and slowing growth.&#8221;<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Henrietta Treyz of Veda Partners added in a note to clients Tuesday that businesses should be ready for more back-and-forth tariffs if Trump moves forward in the days ahead, writing &#8220;it is prudent to anticipate further retaliation from Canada in our view.&#8221;<\/p>\n<figure class=\"relative mb-4\">\n<div class=\"relative\"><img loading=\"lazy\" decoding=\"async\" class=\"rounded-lg\" src=\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/201260d6280bbd18cbf58dfa435eaf191de381cedff0120e16cbe7c6f6ba0fc4\/lightyear_networkapi\/resizefill_w960%3Bquality_80%3Bformat_webp\/https%3A%2F%2Fs.yimg.com%2Fos%2Fcreatr-uploaded-images%2F2026-07%2Fe4f962d0-86ce-11f1-adff-eba4e6d3a616\" alt=\"ARCHIVO - El presidente estadounidense Donald Trump conversa con el primer ministro canadiense Mark Carney, a la derecha, durante un almuerzo de trabajo con l\u00edderes del G7 y de Oriente Medio, el martes 16 de junio de 2026, en Evian-les-Bains, Francia. (Evelyn Hockstein\/Foto compartida v\u00eda AP, archivo)\" width=\"960\" height=\"640\" data-nimg=\"1\" \/><button class=\"group absolute bottom-0 size-full\" aria-label=\"View larger image\" data-ylk=\"elm:expand;itc:1;sec:image-lightbox;slk:lightbox-open;\" data-rapid_p=\"26\" data-y-link-id=\"1y37tjr02ndqob1kg7qx\" data-v9y=\"1\"><\/button><\/div><figcaption class=\"relative text-sm mt-1 pr-2.5\">\n<div>\n<p>President Trump and Canadian Prime Minister Mark Carney speak in June in France. (Evelyn Hockstein\/Associated Press)<\/p>\n<\/div>\n<\/figcaption><\/figure>\n<p class=\"mb-4 text-lg md:leading-8 break-words\"><em>This story has been updated with additional developments.<\/em><\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\"><em>Ben Werschkul is a Washington correspondent for Yahoo Finance.<\/em><\/p>\n<div class=\"max-md:faux-bleed mb-4 bg-accent\/2 pb-5 md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\"><\/div>\n<div class=\"flex w-full flex-nowrap justify-center\"><\/div>\n<\/div>\n<p class=\"mb-4 text-lg md:leading-8 break-words\"><em>Click here for political news related to business and money policies that will shape tomorrow&#8217;s stock prices<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A suite of new tariffs on Canadian goods have been paused for three days in ongoing talks between<\/p>\n","protected":false},"author":6,"featured_media":3731,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[61,7,45,48],"tags":[],"class_list":["post-3730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-canada","category-news","category-tariff","category-us"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/3730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3730"}],"version-history":[{"count":1,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/3730\/revisions"}],"predecessor-version":[{"id":3732,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/3730\/revisions\/3732"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/media\/3731"}],"wp:attachment":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}