"Trade War Averted at Midnight!" Trump Pauses Massive 50% Tariffs on Canada as Both Sides Strike Last-Minute Deal!

In a dramatic, down-to-the-wire breakthrough that averted a full-blown North American trade clash, US President Donald Trump announced a temporary three-day pause on steep 50% tariffs targeting Canadian imports just hours before they were scheduled to kick in. Announcing the move on Truth Social after urgent phone talks with Canadian Prime Minister Mark Carney, Trump stated that the penalty duties have been paused because Washington and Ottawa, subject to the finalization of official documents, "have a DEAL!" Prime Minister Carney confirmed that substantial progress was made in high-stakes negotiations, noting that the United States agreed to postpone the implementation of the duties until August 21 while final terms are ironed out.
The looming tariffs, which Trump threatened last month under a Great Depression-era provision (Section 338 of the US Tariff Act of 1930), were set to hit nearly $20 billion worth of Canadian goods-including automobiles, dairy, alcohol, lumber, wine, and steel. Washington had accused Ottawa of discriminatory trade barriers against American products, while Canadian negotiators pushed back with threats of retaliatory duties while seeking broader exemptions under the United States-Mexico-Canada Agreement (USMCA). In his announcement, Trump also hinted at major energy cooperation, stating that the long-stalled cross-border Keystone XL Pipeline project "may be awoken from the grave" as part of the broader diplomatic understanding.
The United States and Canada exchange nearly $880 billion in annual bilateral commerce, with over $2 billion in goods crossing the northern border every single day.