Substantial progress made, says Canadian PM Carney as American tariffs postponed for three days

OTTAWA, WASHINGTON: With Ottawa and Washington continually engaged in discussions over the 50 per cent tariff on a select range of Canadian goods, Prime Minister Mark Carney said that the implementation of the tariffs has been postponed until August 21. US President Donald Trump on Tuesday (local time) announced a three-day pause on the 50 per cent tariffs on Canadian imports.

Sharing the remarks in a letter posted on X, Prime Minister Carney reassured that while rigorous engagements remain in place with Washington, Canada remains focused on building a stronger, more independent, and more competitive economy at home.

“Over the last number of weeks, Canada has engaged in intensive discussions with the United States to address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families,” he said.

The Canadian Prime Minister observed that while significant headway has been made, key work remains to be done. “Substantial progress has been made, although there is important work still to be done. As this work is ongoing, the United States has agreed to postpone the implementation of its 50% tariff on a range of Canadian goods under Section 338 of the U.S. Tariff Act of 1930 until the end of day, August 21,” he said.

My statement on ongoing Canada-U.S. trade negotiations: pic.twitter.com/rzWZJFYe8e

— Mark Carney (@MarkJCarney) August 19, 2026

The announcement comes in the nick of time as the Trump administration’s latest round of tariffs was originally scheduled to take effect at 12:01 a.m. Eastern Time on Wednesday. According to Canadian public broadcaster CBC, the levies would have applied to hundreds of products worth more than USD 28 billion, from plywood and cement to wine and hockey sticks.

His remarks come shortly after 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 finalisation 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”

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.

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.

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)