WASHINGTON — Canada has temporarily avoided a 50% U.S. tariff after reaching a last-minute agreement with the Trump administration as negotiations continue between the two countries.
President Donald Trump announced Wednesday night that he would pause the tariffs for three days while officials work to finalize the agreement. The duties would have affected roughly $20 billion worth of Canadian goods.
Canadian Prime Minister Mark Carney said the two sides have made substantial progress, although negotiations have not been completed.
The temporary reprieve comes amid months of strained trade relations between the United States and Canada. Businesses on both sides of the border have faced uncertainty over tariffs and the potential impact on trade between the two countries.
Trump also raised the possibility of reviving the long-delayed Keystone XL pipeline, which was designed to transport Canadian crude oil to the United States. Trump provided few details and did not indicate whether restarting the project is part of the current trade negotiations.
The pipeline project has been stalled for years following a series of regulatory and political battles in the United States.
A final trade agreement could provide greater certainty for businesses and the agriculture industry. Farmers and ranchers could be particularly affected by changes in U.S.-Canadian trade because of integrated supply chains and the movement of agricultural products, livestock, fertilizer and other goods across the border.
Officials now have three days to work toward finalizing the agreement before the threatened tariffs could again become an issue.