Trump says US, Canada strike last-minute deal to delay 50% tariffs on Canadian goods

President Donald Trump said on Tuesday, Aug 18th that he was delaying 50% US tariffs on $20 billion worth of Canadian imports, after the two countries reached a last-minute deal hours before the levies were due to take effect.

The announcement, made on Trump's social media platform, buys time for further negotiations and avoids, for now another strain on already tense relations between the two historic allies.

"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 posted on Truth Social, less than two hours before the 12:01 a.m. Wednesday deadline.

Trump's tariffs would have hit about 5% of what Canada ships to the United States annually, covering products ranging from hockey sticks to tongue depressors.

But the political fallout would likely have outweighed the economic impact. Canada had threatened retaliatory levies of its own, risking a deeper trade rift between two countries that exchanged $880 billion in goods and services last year.