Trump pauses tariffs on Canada after last-minute deal

Donald Trump has announced he has paused the imposition of 50% tariffs on more goods from Canada.

The levies on imports worth some $20bn - including vehicles, dairy and alcohol - were due to come into force on Wednesday morning but will be put on hold for three days as an agreement is close.

The US president said on Truth Social that, "subject to the finalisation of documents, we have a DEAL".

Mr Trump's post came less than two hours before the tariffs were due to come into force and followed talks with Canadian Prime Minister Mark Carney on Tuesday afternoon.

It was the second time this week the two men had spoken, with Mr Carney having previously vowed to retaliate.

Speaking on Monday, he described the negotiations as "very intense and delicate".

How did we get here?

Mr Trump's tariffs would have included goods protected from import taxes by the 2020 United States-Mexico-Canada (USMCA) trade agreement, which he himself signed up to.

A retaliation from Mr Carney would have revived a trade war sparked by Mr Trump's "Liberation Day" last April, although many of his tariffs have since been ruled illegal.

The US Supreme Court struck down his broadest global tariffs in February. He responded by announcing a new global 10% import duty that would apply to all countries.

When the extra 50% tariffs on Canada were first announced last month, a senior Trump administration official claimed the country had shown "discrimination" against American goods.

Mr Trump was also said to be seeking retaliation for recent Canadian wildfires that affected the US.

More than 75% of Canada's exports go to the US - C$3.6bn (£1.9bn) of Canadian goods cross the border daily. There are also hundreds of thousands of Canadians living in the US.

Mr Trump's approach to Canada during his second term has been an extraordinary departure from his predecessors, threatening the two countries' traditionally cooperative relationship.

Mr Carney and his predecessor Justin Trudeau have not been afraid to take a tough approach in response.

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(c) Sky News 2026: Trump pauses tariffs on Canada after last-minute deal