Trump Announces Last-Minute US-Canada Trade Deal Averting 50% Tariffs on 20 Billion in Goods

President Trump announced Tuesday that the United States and Canada have reached a last-minute deal, halting planned 50% tariffs on roughly $20 billion worth of Canadian imports that were set to take effect at midnight. Trump posted on social media that the tariffs had been paused for three days, citing a deal that was finalized less than two hours before the sanctions were to kick in. The agreement, according to the Office of the US Trade Representative, is set to include comprehensive market access for American goods, economic security commitments, and digital trade alignment.

Trump also said the deal would eliminate what he called "tremendous" Canadian duties on US farmers, and alluded to a possible revival of the Keystone XL pipeline. Canadian Prime Minister Mark Carney confirmed the pause would last until the end of Friday, but cautioned that "important work still remains to be done." US Trade Representative Jamieson Greer had been meeting with Canadian officials in Washington in the days leading up to the deadline. The iShares MSCI Canada ETF, ticker EWC, drew attention in markets following the announcement.