Trump Pauses 50% Canada Tariff, Signals Keystone XL Revival: SPY, QQQ Traders Eye Relief Rally

In a Truth Social post, US President Donald Trump has delayed planned 50% tariffs on nearly $20 billion of Canadian imports for three days after announcing a preliminary U.S.-Canada trade deal.

• The president also indicated that the Keystone XL Pipeline could be revived. 
• The tariffs would have covered Canadian imports into the U.S., spanning products such as electronics, industrial machinery, furniture, dairy, and wine.
• Meanwhile, Mark Carney, Prime Minister of Canada, said in a statement that the two countries had engaged in “intensive discussions” over the past few weeks to address outstanding trade issues.

U.S. President Donald Trump has hit pause on 50% tariffs on Canadian imports that were scheduled to go into effect at midnight on Wednesday. 

The President also indicated that the Keystone XL Pipeline, proposed to transport about 830,000 barrels of crude oil between Alberta and the U.S. state of Nebraska and delayed multiple times since it was first proposed in 2008, could be revived. 

Trump Delays Canada Tariffs At The Eleventh Hour

“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 said in a post on Truth Social late Tuesday.

The tariffs would have covered roughly $20.2 billion of Canadian imports into the U.S., spanning products such as electronics, industrial machinery, furniture, dairy, and wine.

“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” he added, without providing further details. 

Meanwhile, Mark Carney, Prime Minister of Canada, said in a statement that the two countries had engaged in “intensive discussions” over the past few weeks to address outstanding trade issues.

“Substantial progress has been made, although there is important work still to be done. As this work is ongoing, the United States has agreed to postpone the implementation of its 50% tariff on a range of Canadian goods under Section 338 of the U.S. Tariff Act of 1930 until end of day, August 21,” he said. 

Stocktwits Retail Sees Green At The Open 

Retail investors on Stocktwits anticipated a market reversal to the green at the open on Wednesday, especially for exchange-traded funds linked to the S&P 500 and the Nasdaq Composite indexes. 

One bullish user said, “$SPY pause on Canada tariffs means green in the AM.”

Another user said, “$QQQ Canada Tariffs on comple(te) and total pause courtesy of our great President (folded-hand emoji) Futures will go bright green!”

However, a third user said, “markets exhausted, no pop off the news of potential Canada deal, don’t get caught buying the dip too early. Minimize your risk.”

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500, was down 0.05% amid ‘neutral’ sentiment. Meanwhile, the Invesco QQQ Trust (QQQ), which tracks the tech-heavy Nasdaq, was down 0.10% amid ‘bearish’ sentiment. 

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