Trump pauses Canada tariffs after last-minute deal

Trump's statement on the to-be-finalized deal included few details. It hinted that an agreement with Canada could include restarting Keystone XL, the planned oil pipeline from Alberta to Nebraska that was scrapped in 2021 by then-President Joe Biden. "The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" Trump wrote. In a follow-up post, he shared an AI-generated image depicting him pulling a pipeline labeled "KEYSTONE" out of the ground.

Asked Wednesday morning about the coming deal, Trump did not mention Keystone XL. He said Canadian tariffs "will be non-existent for our farmers," without specifying which duties. The 50% tariff proposal was partly based on Canada's alleged discrimination against the U.S. dairy industry.

Asked if the U.S. would lower its tariffs on Canadian autos as part of the deal, a top goal for Ottawa's trade negotiators, Trump said, "We're doing certain things." "We've got to give something," he added. "They were paying a high number, we're reducing it a little bit, it's good for everybody." "Basically, we have no tariffs going into Canada anymore. Canada was charging us tremendous tariffs. We no longer have any tariffs," he said. The president noted that the deal is "subject to the finalization of documents."

A presidential proclamation released Tuesday night signaled that Canada would lower or remove its trade barriers on the U.S. as part of an agreement. "According to senior executive branch officials, Canada has expressed a commitment to remove the discriminations or unreasonable and unequal impositions" that spurred the 50% tariff threat, according to the proclamation.

U.S. Trade Representative Jamieson Greer wrote in an X post Tuesday evening that the deal "will include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions." After Greer met again with Canada-U.S. Trade Minister Dominic LeBlanc in Washington on Wednesday morning, he said the Trump administration feels "confident that we've reached an agreement" to protect American workers and "strengthen the North American economy." "We certainly, I think, have eliminated some of the irritants that we've had in the past year," Greer said.

The deal, if finalized, would remove a major source of uncertainty for cross-border trade. The three-day window means the clock is ticking. The final documents are due by Friday.