WASHINGTON DC: US President Donald Trump has postponed the introduction of new tariffs on a wide range of Canadian goods for three days, saying the two countries are close to finalizing a trade agreement.
Trump said he had delayed the planned 50% tariffs, which were due to take effect the following morning, after the US and Canada made significant progress toward a deal. He said the agreement was subject to the completion of the necessary documents.
The announcement came less than two hours before the 50% levy on nearly $20 billion worth of Canadian imports was scheduled to take effect.
The two countries remain divided over several issues, including US tariffs on automobiles and restrictions imposed by several Canadian provinces on the sale of American liquor.
Trump and Canadian Prime Minister Mark Carney spoke twice this week, while trade negotiators have been engaged in intensive discussions since July. Trump had set August 19 as the deadline for Canada to reach an agreement and avoid the new tariffs. Carney said significant progress had been made, although important issues still needed to be resolved.
Trump also said a final trade agreement could pave the way for the revival of the Keystone XL pipeline, a proposed project to transport oil from Alberta to the United States. The pipeline was rejected by both the Obama and Biden administrations.
Environmental and Indigenous groups have long opposed the project. Trump, however, has repeatedly expressed support for reviving the pipeline, which was designed to transport about 830,000 barrels of oil per day.
(Inputs from BBC)
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