The U.S. president announced on Truth Social that Washington and Ottawa reached a deal just two hours before the deadline for imposing 50 percent tariffs on $20 billion worth of Canadian imports.
U.S. President Donald Trump delayed the imposition of 50 percent tariffs on $20 billion worth of Canadian imports, announced on Wednesday, August 19, 2026. The delay lasts three days, and Trump stated that the two countries reached a last-minute deal, as reported by Anadolu Agency.
"Canada and the U.S.A., subject to the finalization of documents, have a deal!", Trump wrote on his social media platform Truth Social. In another post, he added: "I have paused the 50 per cent Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the USA., subject to the finalization of documents, have a DEAL!", as reported by Hindustan Times.
The tariffs were set to take effect at 12:01 a.m. Wednesday, and Trump announced the delay less than two hours before the deadline. The new duties would have affected about five percent of Canada's total exports to the U.S., including products such as hockey equipment, wine, dairy products, cement, and clothing, according to Stijena.info.
Canada and the U.S. exchanged goods and services worth $880 billion last year. Canada had threatened its own countermeasures if the tariffs took effect, which would have further escalated the trade conflict between the two historic allies.
Trump and Canadian Prime Minister Mark Carney spoke twice during the week, while negotiators have been trying to reach a compromise since July. Washington is seeking the removal of Canadian countermeasures on American cars and changes to dairy quotas, while Ottawa wants the elimination or reduction of tariffs in key sectors.
In the final hours before the deadline, there were also talks about reducing U.S. tariffs on Canadian cars from 25 to 15 percent, Reuters reported, citing unnamed sources. However, the two sides could not agree on which vehicles would qualify for the lower rate.
Ontario Premier Doug Ford said he is ready to consider bringing American alcohol back to Canadian store shelves only if Canada gets a fair deal. Ontario is especially vulnerable due to its large number of auto plants and jobs in that industry.
The U.S. Chamber of Commerce warned that continued tariff conflict would increase costs for American families and threaten jobs. Trump announced that a final deal could also pave the way for reviving the Keystone XL pipeline project, which would transport about 830,000 barrels of oil per day from Alberta to the U.S. The project was previously halted by the administrations of Barack Obama and Joe Biden.
