Archive · 20 Aug 2026
Trump Delays 50% Canada Tariff as Trade Deal Nears
The United States and Canada are trying to finish a new trade agreement.
Donald Trump said the countries were very close to a deal.
The United States had planned a 50% tariff on many Canadian goods.
A tariff is an extra charge placed on goods brought into a country.
Trump delayed the tariff for three days so negotiators could complete the details.
He said some tariffs on Canadian steel and aluminium might be lowered.
He also said American farmers would not have to pay tariffs, although it was unclear exactly what that meant.
Mark Carney said progress was substantial but the agreement was not finished yet.
Donald Trump delayed a proposed 50% tariff on Canadian goods for three days at Canada’s request.
Trump said the United States and Canada were close to finalising a trade agreement.
Washington is considering reducing some tariffs on Canadian steel and aluminium.
Trump said American farmers would no longer pay tariffs under the proposed agreement, though the details were unclear.
Canadian Prime Minister Mark Carney said substantial progress had been made but important work remained.
- Who
- US President Donald Trump and Canadian Prime Minister Mark Carney, representing the United States and Canada.
- What
- The countries are negotiating a trade agreement while the United States pauses a proposed 50% tariff on Canadian goods.
- When
- On Wednesday; the tariff delay was extended until the end of August 21.
- Where
- The announcement was made at the White House in Washington, DC, and concerns trade between the United States and Canada.
- Why
- The pause was requested by Canada to allow both sides to complete negotiations and finalise the agreement’s details.
Deal Nearly Complete
Final Details Still Unfinished
Status of the agreement
Deal Nearly Complete
Trump said the United States and Canada had reached, or were close to reaching, a trade deal and described it as potentially beneficial for both countries.
Final Details Still Unfinished
Carney said substantial progress had been made but stressed that important work remained before the agreement was complete.
Tariff commitments
Deal Nearly Complete
Trump said American farmers would no longer pay tariffs and suggested some Canadian steel and aluminium tariffs could be reduced.
Final Details Still Unfinished
The reports do not identify final tariff terms, and Trump’s comments did not clarify what form of relief American farmers would receive.
Reason for the pause
Deal Nearly Complete
Trump presented the three-day delay as time to iron out the remaining details of a promising agreement.
Final Details Still Unfinished
Carney’s statement indicated that negotiations were still ongoing and that the pause was needed while substantial remaining work continued.
- Proposed tariff
- A 50% tariff on a range of Canadian goods was scheduled to take effect at 7:00 a.m.
- Tariff delay
- The United States postponed implementation for three days at Canada’s request.
- New deadline
- Mark Carney said the delay would last until the end of August 21.
- Steel and aluminium
- Trump said the United States was considering reducing some tariffs on Canadian steel and aluminium.
- American farmers
- Trump said American farmers would receive zero tariffs under the proposed agreement.
- Negotiation status
- Trump described the countries as close to a deal, while Carney said important work remained.
- Trade scope
- The proposed tariffs were expected to affect hundreds of Canadian products worth billions of dollars.
