President Donald Trump has delayed tariffs on a range of Canadian imports for three days as the two countries work towards a trade agreement that could provide relief for the lumber sector and other key industries.
US President Donald Trump has delayed the introduction of new tariffs on a wide range of Canadian goods for three days as the two countries work towards finalising a trade agreement.
Trump said the planned 50% tariffs, scheduled for 19 Aug, would be paused while the final documents were prepared. The announcement came less than two hours before the levy on nearly $20bn of Canadian imports was due to take effect.
Talks between the two countries remain ongoing. Senior trade representatives from the US and Canada met in Washington on 19 Aug following the announcement.
Speaking to reporters, Trump described the proposed agreement as “very good” for both countries. He suggested it would involve concessions from Canada on agriculture and manufacturing, as well as reductions to some existing US tariffs.
Trump and Canadian Prime Minister Mark Carney have spoken twice this week, while negotiators have been holding intensive discussions since Jul, when Trump threatened to introduce the new levy with a deadline of 19 Aug.
The three-day extension offers temporary relief to Canadian negotiators and businesses on both sides of the border, which have warned that higher tariffs would harm both economies.
Relations between the two major trading partners have been strained since Trump returned to office in Jan last year and introduced a broad programme of tariffs affecting countries around the world.
The latest measures threatened a range of Canadian imports, including wine, dairy products, cement, clothing and hockey equipment. They would have been imposed in addition to existing US tariffs on Canadian steel and aluminium, vehicles and lumber.
Canada has been seeking an agreement that would reduce or remove tariffs on several key sectors. The US, meanwhile, has pressed Canada to remove its remaining retaliatory tariffs on American products.
The US Chamber of Commerce also urged the two countries to reach an agreement, warning that higher tariffs could raise costs for American families, disrupt supply chains and threaten jobs linked to trade under the US-Mexico-Canada Trade Agreement.
Source: BBC
