Trump pauses new tariffs on Canada and says countries close to a deal
BBC World
BBC World
Original Source
President Donald Trump announced a three-day pause on 50% tariffs against Canadian goods, citing substantial progress toward a trade deal between the two nations. Trump also indicated that reviving the Keystone XL pipeline could be part of the final agreement.
US President Donald Trump said he will delay imposing new tariffs on a wide array of Canadian goods for three days as the countries firm up a trade deal.
"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 said in a social media post.
The announcement came less than two hours before a 50% levy on nearly $20bn (£14.8bn; C$28bn) of Canadian imports was set to go in place.
The two sides have been at an impasse on several issues, including US tariffs on autos and many Canadian provinces banning American liquor sales.
Trump and Canadian Prime Minister Mark Carney spoke twice this week, and trade negotiators have been engaged in intense talks since July, after the US president threatened the new levy with a deadline of 19 August.
"Substantial progress has been made, although there is important work still to be done," Carney said in a letter posted on X.
In his post, Trump also said a final trade deal could allow the revival of the Keystone XL pipeline. The oil pipeline, which would connect Alberta to the US, was blocked by both the Obama and Biden administrations.
Environmentalists and indigenous groups have long opposed the pipeline but Trump has said multiple times he would like to revive the project, which would carry 830,000 barrels of oil a day.
"The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" Trump wrote on Truth Social.
"The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment", US Trade Representative Jamieson Greer's office posted on X.
It will also include "many important provisions that will continue to protect our market and American workers, along with our Canadian partners", it added.
In the final hours before Wednesday's deadline, negotiators were discussing a deal that would reduce US tariffs on Canadian autos from 25% to 15%, according to a Reuters report citing anonymous sources.
But the two countries could not agree on which vehicles would be eligible for tariff reductions, with the US pushing for it to only apply on cars with a high amount of American-made content.
Carney will also need buy-in from provincial premiers to reinstate the sale of US alcohol, as liquor sales are controlled by the provinces, not the federal government.
Ontario Premier Doug Ford, whose province is hardest hit by US tariffs on autos, said he was open to lifting the liquor ban only if a "fair deal" is reached.
On Tuesday, the US Chamber of Commerce pushed for a deal to be reached, saying in a statement that "higher tariffs would damage both economies, drive up costs for US families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the US-Mexico-Canada Trade Agreement".
Additional reporting by Peter Hoskins
"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 said in a social media post.
The announcement came less than two hours before a 50% levy on nearly $20bn (£14.8bn; C$28bn) of Canadian imports was set to go in place.
The two sides have been at an impasse on several issues, including US tariffs on autos and many Canadian provinces banning American liquor sales.
Trump and Canadian Prime Minister Mark Carney spoke twice this week, and trade negotiators have been engaged in intense talks since July, after the US president threatened the new levy with a deadline of 19 August.
"Substantial progress has been made, although there is important work still to be done," Carney said in a letter posted on X.
In his post, Trump also said a final trade deal could allow the revival of the Keystone XL pipeline. The oil pipeline, which would connect Alberta to the US, was blocked by both the Obama and Biden administrations.
Environmentalists and indigenous groups have long opposed the pipeline but Trump has said multiple times he would like to revive the project, which would carry 830,000 barrels of oil a day.
"The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" Trump wrote on Truth Social.
"The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment", US Trade Representative Jamieson Greer's office posted on X.
It will also include "many important provisions that will continue to protect our market and American workers, along with our Canadian partners", it added.
In the final hours before Wednesday's deadline, negotiators were discussing a deal that would reduce US tariffs on Canadian autos from 25% to 15%, according to a Reuters report citing anonymous sources.
But the two countries could not agree on which vehicles would be eligible for tariff reductions, with the US pushing for it to only apply on cars with a high amount of American-made content.
Carney will also need buy-in from provincial premiers to reinstate the sale of US alcohol, as liquor sales are controlled by the provinces, not the federal government.
Ontario Premier Doug Ford, whose province is hardest hit by US tariffs on autos, said he was open to lifting the liquor ban only if a "fair deal" is reached.
On Tuesday, the US Chamber of Commerce pushed for a deal to be reached, saying in a statement that "higher tariffs would damage both economies, drive up costs for US families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the US-Mexico-Canada Trade Agreement".
Additional reporting by Peter Hoskins
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Source: BBC World
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