US President Donald Trump has delayed a planned 50 per cent tariff on Canadian goods for three days, saying the United States and Canada were close to reaching an agreement that could also lead to lower duties on steel and aluminium.
Trump made the announcement at the White House on Wednesday, saying the tariff had been due to come into effect earlier in the day but was postponed following a request from Canada.
Tariff pause follows Canadian request
Trump said the planned tariff was initially scheduled to take effect at 7 am but that his administration agreed to delay its implementation to give both sides additional time to work through the details of a potential agreement.
“We delayed it for three days because I think we have a deal with the Prime Minister and a good deal for everybody,” Trump said.
He added that the three-day period would allow negotiators to “iron out the details” of the proposed arrangement.
Trump did not name the Canadian prime minister or provide specific details about what the two governments had agreed on.
Steel and aluminium tariffs under discussion
The US President indicated that steel and aluminium were among the key areas being discussed during the negotiations.
Asked whether Washington could reduce tariffs on Canadian steel and aluminium, Trump said his administration was considering the possibility.
“Well, we’re looking at that,” he said.
Trump also suggested that Canada could eventually face tariff rates similar to those imposed on other US trading partners, noting that Canadian goods had previously been subject to comparatively higher duties.
Agriculture also part of negotiations
Agriculture emerged as another issue in Trump’s remarks.
The President claimed that American farmers had been negatively affected by Canada’s trade practices and said he expected the proposed agreement to provide relief to them.
“Well, we’re getting zero for our farmers,” Trump said, adding that farmers had been “hurt very badly by Canada”.
He also said Canadian tariffs affecting American agricultural products would no longer apply under the expected arrangement.
However, Trump’s comments did not make clear whether he was referring to the complete removal of tariffs on US agricultural exports to Canada or another form of relief that may be included in the proposed agreement.
Trump signals improved relations
Despite the ongoing tariff dispute, Trump struck a relatively positive tone when discussing the current relationship between Washington and Ottawa.
He said the US administration currently had a “very nice relationship” with Canadian leadership and indicated that negotiations could produce a mutually beneficial outcome.
The comments came during a White House event attended by senior regulators and prominent figures from the finance, cryptocurrency and technology sectors.
Trump was discussing artificial intelligence and investment when he announced the three-day tariff delay.
Trump also referred to developments in the automobile industry, claiming that manufacturers were shifting operations towards the United States from Canada, Mexico and other countries.
He specifically mentioned Honda and Toyota, saying both companies had announced moves involving their operations.
The comments came as the administration continues to promote increased manufacturing and investment in the US as part of its broader trade policy.
Major economic relationship at stake
The United States and Canada share one of the world’s largest bilateral trading relationships, with their economies closely connected through automotive manufacturing, agriculture, energy and industrial supply chains.
Components, raw materials and finished products regularly move across the US-Canada border, making changes in tariff policy significant for businesses and consumers in both countries.
Steel and aluminium have also remained recurring sources of tension between the two neighbours.
The three-day delay now gives negotiators additional time to reach a final understanding before the proposed 50 per cent tariff is reconsidered.
For now, Trump has described the discussions as being close to a deal, although the precise terms of any agreement have yet to be announced.
(With inputs from IANS)
Trump delays 50 per cent Canada tariff by three days amid trade talks
