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Trump Pauses New Tariffs on Canadian Goods for Three Days
WASHINGTON — August 18, 2026
U.S. President Donald Trump has paused plans to impose new 50% tariffs on Canadian goods for three days, saying the United States and Canada had reached a deal, although Canadian Prime Minister Mark Carney said important work remains before an agreement is finalized.
Trump said the pause would remain in place while the two countries complete the necessary documents. The decision came after Trump and Carney spoke on Tuesday, their second conversation this week, following weeks of negotiations between officials from both governments.
Carney said Canada and the United States had made substantial progress but still needed to resolve important issues. He also said Canada would continue working to build a stronger and more competitive economy at home.
The office of U.S. Trade Representative Jamieson Greer said the proposed agreement would include broader access for American goods in Canada, commitments on economic security and closer alignment on digital trade. The White House also said Canada had committed to addressing U.S. concerns involving dairy products, alcoholic beverages and motor vehicles.
Neither government released full details of the agreement. Canadian officials have not confirmed that a final deal has been reached, while U.S. officials have provided limited information about the terms.
The tariffs had been scheduled to take effect at midnight and would have covered about $20 billion worth of Canadian imports. They would have applied even to goods that receive preferential treatment under the United States-Mexico-Canada Agreement, which has protected much of Canada's trade from earlier U.S. tariffs.
The automotive sector has been one of the most difficult issues in the negotiations. Earlier discussions included a possible reduction in U.S. tariffs on Canadian vehicles from 25% to 15%, with additional reductions depending on how much U.S. content is used in each vehicle.
Another dispute involved how the value of American content in Canadian-made vehicles should be calculated when determining tariff reductions. Washington wanted only U.S.-produced parts to count, while Canada argued that Canadian and Mexican content should also qualify as North American content.
On Tuesday, the U.S. Commerce Department introduced new rules requiring automakers exporting vehicles from Canada and Mexico to certify their current levels of U.S. content. The new system reduces the certification process from twice a year to once annually, although automakers must complete a new certification by September 30 to qualify for deductions under the cycle beginning December 1.
Canadian officials had warned that the new tariffs could hurt industries such as lumber, wine and dairy. Trade experts and business groups also said the measures could result in job losses and business closures while making wider negotiations under the USMCA more difficult.
Canadian Minister responsible for U.S. trade Dominic LeBlanc and chief trade negotiator Janice Charette have been in Washington for talks since last week. They met with Greer and U.S. Commerce Secretary Howard Lutnick for nearly two hours on Monday.
U.S. officials have raised several concerns during the negotiations, including Canada's dairy supply system, tariffs imposed by Canada in response to earlier U.S. measures and restrictions in some Canadian provinces on the sale of U.S. liquor.
The Distilled Spirits Council of the United States welcomed Trump's decision to pause the tariffs and called for an agreement that would restore American spirits to retail shelves across Canada and return the sector to a zero-tariff system.
Trump also raised the possibility of reviving the Keystone XL oil pipeline, a project canceled by former President Joe Biden in 2021 after years of opposition from Indigenous groups and environmental organizations. Trump did not provide details on how the project could be restarted.
The three-day pause gives negotiators additional time to settle the remaining issues before the tariffs could be imposed. For now, both governments appear to have avoided an immediate escalation, but the final terms of any agreement remain unclear.
