President Donald Trump paused planned 50% tariffs on Canadian goods late Tuesday night after the two nations reached a preliminary trade deal [1, 2, 3].
The pause prevents an immediate trade escalation between the two largest trading partners in North America, avoiding potential price spikes and supply chain disruptions.
The announcement came approximately 90 minutes [3] before a midnight deadline on Aug. 18, 2026 [1, 3]. The move delays the imposition of the 50 percent [1] tariffs for an initial three-day period [2, 3].
Trump said the pause is based on the fact that Canada and the U.S. have a deal, subject to the finalization of documents [2]. The U.S. president said the move was a delay following a last-minute agreement [4].
A U.S. official said the two countries reached a trade deal to avert steep tariffs [5]. The preliminary agreement allows both governments to finalize the necessary paperwork before any duties are applied to Canadian imports.
While the specific terms of the deal were not disclosed, the three-day window [2, 3] serves as a buffer to prevent the tariffs from kicking in on Wednesday morning [2]. This window provides a short-term reprieve for businesses that rely on cross-border trade.
Negotiations between Washington and Ottawa had intensified as the deadline approached. The 50 percent [1] rate would have represented one of the most significant trade barriers between the two neighbors in recent history.
“"I have paused the 50% Tariffs against Canada... based on the fact that Canada and the U.S.A. have a DEAL!"”
The last-minute pause indicates that the U.S. administration is using the threat of high tariffs as a primary lever in trade negotiations. By delaying the 50% duty just 90 minutes before the deadline, the U.S. maintains maximum pressure on Canada while providing a narrow window to formalize a deal that avoids a full-scale trade war.
