Tariffs Halted As Trump Reaches Tentative 'DEAL' With Canada

Aug 18, 2026 10:21 PM
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Tariffs Halted As Trump Reaches Tentative 'DEAL' With Canada
AP Photo/Evan Vucci

President Donald Trump has announced an agreement with Canada to halt tariffs the United States was set to impose on the country on Wednesday.

"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 finalization of documents, have a DEAL!" Trump said in a Truth Social post. 

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"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," he continued.

Townhall reported last month that the tariffs would have impacted many Canadian exports like hockey sticks and wine, as it was a move to protest tariffs that the northern neighbors had on American made alcohol and cheese, among other goods. 

"At the outset of the president's trade policy, which he implemented early last year, there were only two countries that retaliated against the United States: the People's Republic of China and Canada," an administration official said at the time. 

"Canada has retained substantial retaliation against the United States, as the U.S. imposes trade actions to re-industrialize, re-shore, and support its manufacturing. Specifically, Canada has to be held accountable for this continued discrimination," the official continued. 

"For example, one of the things that has happened is that all the two Canadian provinces and territories have halted the purchase, distribution, or retailing of U.S. alcoholic beverages, but they have not imposed similar restrictions on other countries," the official said. "A second example is that Canada imposes certain tariffs and quotas on cars imported to Canada from the United States. But not on imports from other countries. Canada also administers the quota in a way that compels U.S. auto companies to invest in production in Canada instead of the United States."

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