Donald Trump pauses Canada tariffs, hints at reviving Keystone XL pipeline

Donald Trump announced a three-day pause on 50% tariffs against Canada, stating the two countries have reached a deal. The reprieve affects USD 28 billion in goods. Trump also raised the possibility of reviving the Keystone XL pipeline.

US President Donald Trump on Tuesday (local time) announced a three-day pause on the 50 per cent tariffs on Canadian imports that were due to take effect the following morning, saying the United States and Canada had reached a deal subject to the finalisation of documents.

In a post on Truth Social, Trump said,"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 also raised the possibility of reviving the politically contentious Keystone XL pipeline, saying, "The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave! Thank you for your attention to this matter. President DONALD J. TRUMP"

Last-Minute Reprieve Averts Tariffs

According to an article in the Toronto Sun, with less than two hours remaining before the new tariffs were scheduled to take effect, Trump announced the reprieve in the post. Had the tariffs gone ahead, around USD 28 billion worth of Canadian products, including hockey sticks, cement, alcohol, and honey, would have faced 50 per cent tariffs at midnight.

The three-day pause is expected to provide additional time for negotiations between the two countries. Talks intensified last week, with Canadian officials holding discussions with Trump's negotiating team in Washington.

Keystone XL Pipeline Back in Discussion

The proposed Keystone XL pipeline has been a longstanding political issue in the US. The project was cancelled by former US President Barack Obama after initially receiving approval and was later revived by Trump during his first term before being cancelled again by former President Joe Biden after he took office in 2020.

Bilateral Concerns and High-Level Talks

As per the article, the United States has sought greater access to Canadian energy and critical minerals, although it remains unclear whether the Keystone XL proposal forms part of the latest negotiations. According to the article, one of Canada's key concerns in the talks has been auto tariffs, while the US has raised Canada's restrictions on American alcohol sales. Ontario's liquor authority has maintained a ban on American alcohol products since March 2025.

Canadian Prime Minister Mark Carney and Trump spoke directly on Monday and Tuesday as their respective teams worked towards an agreement. Carney had said on Monday that the coming days would be crucial for the negotiations. "We'll have opportunities over the next 48 hours to discuss in more detail as the negotiations go forward, and I think that's the best forum," he said.

The three-day pause will now allow the two sides to continue negotiations while the final documents are being worked out.

Businesses and communities in Canada that were facing a sharp increase in tariffs have received temporary relief from the planned measures. (ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)