Trump pauses 50% tariffs on Canada after announcing potential deal

President Donald Trump said late Tuesday that he is pausing 50% tariffs on Canadian goods scheduled to take effect Wednesday, saying the two countries have reached a deal pending final documentation.

“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 wrote on Truth Social.

“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump added.

Trump’s announcement came just hours before the tariffs were scheduled to take effect for a three-day period under the Tariff Act of 1930.

FORD’S US MANUFACTURING EXPANSION TO BRING ‘THOUSANDS AND THOUSANDS OF JOBS,’ LUTNICK SAYS

President Donald Trump takes questions from reporters in the Oval Office of the White House on Aug. 10, 2026. Trump criticized New York City’s pied-à-terre tax and said he is examining whether the federal government has legal authority to intervene. (Anna Moneymaker/Getty Images / Getty Images)

The duties would have covered roughly $20 billion in Canadian imports, including liquor, dairy products, vehicles, hockey equipment and other goods. Certain food products, wearables, synthetic materials and industrial goods were also expected to be affected.

Trump spoke with Canadian Prime Minister Mark Carney on Monday night and reportedly spoke with him again Tuesday afternoon, according to FOX Business correspondent Edward Lawrence.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

This is a developing story. Check back for updates.

FOX Business’ Bonny Chu contributed to this report.