President Donald Trump has announced a three-day pause on new 50 per cent tariffs on Canadian goods.
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Trump → announce → goods
The tariffs were set to go into effect overnight Tuesday.
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tariffs → set → effect
An hour after Trump said that the U.S. and Canada had reached a deal, Canadian Prime Minister Mark Carney said that "substantial progress has been made, although there is important work still to be done."
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progress → say → deal
In a post on Truth Social, Trump explained that he paused the tariffs "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL."
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Canada → explain → DEAL
Trump and Carney spoke on Tuesday afternoon, their second conversation this week, whilst negotiators have been engaged in weeks of intense and opaque discussions.
"While we continue this work, Canada remains focused on building a stronger, more independent and more competitive economy at home," Carney said.
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Carney → speak → home
The office of U.S. Trade Representative Jamieson Greer said the deal will include "comprehensive market access for all American goods, economic security commitments, digital trade alignment," amongst other provisions.
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deal → say → provisions
In a proclamation posted on the White House website, Trump said that Canada committed to addressing U.S. concerns regarding duties on dairy products, alcoholic beverages and motor vehicles.
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Canada → post → products
U.S. officials provided no additional details, and the Canadian government did not confirm the contents of any agreement.
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government → provide → agreement
Existing U.S. auto tariffs had been a sticking point, two industry sources familiar with the talks said earlier.
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sources → exist → talks
The new U.S. tariffs would have covered about $20 billion worth of imports and applied regardless of whether Canadian goods qualify for preferential treatment under the U.S.-Mexico-Canada trade agreement, which has shielded much of Canadian industry from earlier U.S. tariffs.
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which → cover → tariffs
Trump added in his social media post that the Keystone XL pipeline – a project canceled by former President Joe Biden in 2021 after years of indigenous and environmental opposition – "may be awoken from the grave," but did not provide details.
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pipeline → add → details
Trump has made tariffs a central pillar of his foreign and trade policies despite legal setbacks and criticism from some analysts.
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tariffs → make → analysts
Tariffs could have led to Canadian job losses
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Tariffs → lead → losses
Trade experts and industry officials said earlier that the new tariffs could lead to job losses and business closures in vulnerable sectors in Canada, including lumber, wine and dairy.
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tariffs → say → lumber
They also warned the dispute could complicate broader USMCA negotiations.
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dispute → warn → negotiations
On Monday, the Canadian officials met for nearly two hours with Greer and Commerce Secretary Howard Lutnick.
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officials → meet → Greer
Greer has repeatedly cited Canada's tariffs that followed initial U.S. tariffs, the Canadian dairy supply management system and some provinces' refusal to stock U.S. liquor, among other U.S. grievances.
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that → cite → grievances
In a statement late on Tuesday, the Distilled Spirits Council of the U.S. applauded Trump's announcement and called for "a negotiated solution that gets American spirits back on retail shelves in all Canadian provinces and returns the spirits sector to a zero-for-zero tariff framework.
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that → applaud → framework
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The sides have also discussed cutting U.S. Section 232 tariffs on Canadian vehicles to 15 per cent from 25 per cent, with further reductions based on the amount of U.S. content in each vehicle, the sources had said.
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sources → discuss → vehicle
Tensions over tariff deductions
A major point of contention was how tariff deductions based on content should be calculated, with Washington demanding that only U.S.-produced content be counted.
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content → base → content
Canada pushed for all North American content, including Canadian and Mexican parts, to be counted, sources had said earlier.
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sources → push → parts
Earlier on Tuesday, the U.S. Commerce Department released new rules for automakers exporting from Canada and Mexico to certify their current levels of U.S. content for tariff deductions, reducing the complicated exercise to once per year from twice.
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automakers → release → twice
But the Federal Register notice said automakers must re-certify vehicles' American content by September 30 for them to claim deductions in the new annual cycle starting December 1.
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them → say → cycle
A Canadian government source said last week that all options remained on the table if the new tariffs take effect, including government support for affected domestic industries and a possible suspension of bilateral trade talks, but the source expressed hope that the U.S. was keen to reach a deal.
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U.S. → say → deal
The Aporia
