Photo courtesy of Anadolu
US President Donald Trump temporarily suspended a planned 50-percent tariff on Canadian goods late Tuesday as Washington and Ottawa moved closer to a trade agreement.
The higher duties were supposed to take effect Wednesday morning but were deferred until Aug. 21 while the two governments worked to complete the terms of a possible deal.
Trump announced the pause after speaking by phone with Canadian Prime Minister Mark Carney, whose government had sought to prevent the tariffs from hitting about C$30 billion worth of Canadian products.
Carney confirmed that Washington had postponed the implementation of duties under Section 338 of the US Tariff Act of 1930, giving negotiators additional time to settle remaining issues.
Recent talks had brought the two countries closer to resolving their trade differences, Carney said, although key details remained unsettled.
The negotiations could also reopen discussions over the Keystone XL pipeline. Trump raised the prospect of reviving the cross-border energy project, which was abandoned after its permit was revoked under former US President Joe Biden.
The proposed pipeline had been designed to carry Canadian crude to the United States, making its possible revival another potential element in the evolving economic relationship between the neighboring countries.
Canada said negotiations would continue while it worked to provide greater stability for its businesses, workers, farmers and households amid uncertainty surrounding the tariff dispute.
