Trump pauses 50% tariffs on Canada after announcing potential deal

August 19, 2026:

Trump pauses 50% tariffs on Canada after announcing potential deal

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President Donald Trump said late Tuesday that he is pausing 50% tariffs on Canadian goods scheduled to take effect Wednesday, saying the two countries have reached a deal pending final documentation.

“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump wrote on Truth Social.

“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump added.

Trump’s announcement came just hours before the tariffs were scheduled to take effect for a three-day period under the Tariff Act of 1930.

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President Donald Trump takes questions from reporters in the Oval Office at the White House

President Donald Trump takes questions from reporters in the Oval Office of the White House on Aug. 10, 2026. (Anna Moneymaker/Getty Images / Getty Images)

The duties would have covered roughly $20 billion in Canadian imports, including liquor, dairy products, vehicles, hockey equipment and other goods. Certain food products, wearables, synthetic materials and industrial goods were also expected to be affected.

Trump spoke with Canadian Prime Minister Mark Carney on Monday night and reportedly spoke with him again Tuesday afternoon, according to FOX Business correspondent Edward Lawrence.

FOX Business reached out to the White House for comment.

The Trump administration announced the proposed tariffs on certain Canadian imports in June, citing what officials described as trade “discrimination” against American businesses.

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Donald Trump shakes hands with Canadian Prime Minister Mark Carney during summit in Egypt

President Donald Trump greets Canada’s Prime Minister Mark Carney during a world leaders’ summit on ending the Gaza war on Oct. 13, 2025, in Sharm El-Sheikh, Egypt. (Evan Vucci – Pool / Getty Images / Getty Images)

According to presidential proclamations, Canada has maintained a 25% tariff regime since April 9, 2025, targeting American-made motor vehicles and parts.

The administration previously accused Canada of using a quota system that limits the number of U.S.-made vehicles allowed into the country tariff-free.

Officials said the system further penalizes companies that shift manufacturing jobs from Canada back to the U.S., effectively pressuring American companies to keep production north of the border.

Carney condemned the Trump administration’s tariff plan at the time, calling it a “direct violation” of the Canada-United States-Mexico Agreement (CUSMA), the free trade agreement among the three countries.

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Canadian Prime Minister Mark Carney and US President Donald Trump

Canadian Prime Minister Mark Carney greets President Donald Trump at the official welcome ceremony during the G7 Leaders’ Summit on June 16, 2025 in Kananaskis, Alberta. (Chip Somodevilla/Getty Images / Getty Images)

This is a developing story. Check back for updates.

FOX Business’ Bonny Chu contributed to this report.

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