De-escalation: Trump and Carney delay 50% tariffs

Less than two hours before the 12:01 a.m. Wednesday deadline, President Donald Trump said he reached a deal with Prime Minister Mark Carney to delay new tariffs on Canadian goods. He announced the tariffs were paused pending final paperwork.

The planned 50% duties were set to hit about $20 billion in Canadian imports, roughly 5% of Canada’s exports to the U.S. The pause follows last‑minute talks that included calls between the two leaders through Tuesday.

The tariff threat rested on Section 338 of the 1930 Tariff Act, an authority not previously used. Canada had prepared retaliatory levies if the tariffs took effect.

AI-synthesized from multiple reported sources