Trump Pauses 50% Tariffs on Canada After Last-Minute Deal

KEMETIC MINDS — BREAKING NEWS
August 19, 2026

WASHINGTON — President Donald Trump said Tuesday that the United States and Canada reached a last-minute deal to delay 50% tariffs on $20 billion worth of Canadian imports, less than two hours before the sanctions were set to take effect at 12:01 a.m. Wednesday (KGW, 2026). Trump announced the pause on his Truth Social platform, saying the tariffs were suspended “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!” (KGW, 2026).

Key Facts

• The tariffs would have applied to roughly 5% of what Canada ships to the United States every year, including products ranging from hockey sticks to tongue depressors (WXYZ, 2026).
• Trump and Canadian Prime Minister Mark Carney spoke twice by phone in the past two days about the ongoing negotiations, including a call Tuesday afternoon (WXYZ, 2026).
• Canada had threatened to retaliate against any new tariffs with levies of its own, in a bilateral trade relationship that saw $880 billion in goods and services exchanged between the two countries last year (WXYZ, 2026; KGW, 2026).
• Nearly 72% of Canada’s goods exports last year went to the United States (KGW, 2026).
• A White House proclamation said Canada had expressed a commitment to remove measures the Trump administration considers discriminatory against U.S. alcohol, dairy and motor vehicle exports; Canada did not immediately confirm those commitments (KGW, 2026).

Deal Details and Stakes

Carney said in a statement that “substantial progress” had been made but that important work remained, confirming Canada had agreed to the three-day delay while negotiations continued (KGW, 2026). The prime minister had told reporters Monday, speaking in French, “We are negotiating. The negotiations are very intense and delicate. This is not the time to talk about negotiations in public.” (WXYZ, 2026).

The two countries have wrangled for decades over trade, including over Canadian softwood lumber imports (WXYZ, 2026). The threatened import taxes — paid by U.S. importers who try to pass along the cost to consumers via higher prices — carried political risk ahead of November’s midterm elections, with U.S. voters already frustrated with the high cost of living (KGW, 2026).

Reactions

Ryan Majerus, a partner at King & Spalding and a former U.S. trade official, said before the delay was announced: “I don’t think either side really wants these tariffs to come into effect. There’s a pretty strong push on both sides to find an off-ramp here.” (KGW, 2026).

Canadian Chamber of Commerce President and CEO Candace Laing said in a statement that the three-day tariff delay offered businesses some relief (KGW, 2026).

Canadian businesses had already begun adjusting. “Because the announcement happened with like a 30-day window, it meant that we pivoted to make all of items that were going to fall under this tariff as quickly as possible,” said Lukas Schieck, a strategy manager with Great Pretenders (WXYZ, 2026). Dr. Marick Masters, Management Professor Emeritus at Wayne State University, said of the administration’s approach: “He wanted to see something fundamentally changed. And, Trump has made an effort to bring that about.” (WXYZ, 2026).

What’s Still Unconfirmed

Canada did not immediately confirm the commitments described in the White House proclamation regarding U.S. alcohol, dairy and motor vehicle exports (KGW, 2026). Trump’s announcement said the pause was “subject to the finalization of documents,” and the finalized terms of the agreement have not been publicly released (KGW, 2026).

References

1. KRQE. (2026, August 19). The Latest: Trump says US and Canada reached deal to delay US tariffs on Canadian imports. krqe.com
2. WXYZ 7 News Detroit. (2026, August 18). Trump says US and Canada have reached last-minute deal to delay 50% US tariffs on Canadian imports. wxyz.com
3. KGW. (2026, August 19). President Trump says US and Canada have reached last-minute deal to delay 50% US tariffs on Canadian imports. kgw.com