Trump pauses 50% tariffs on Canada after last-minute trade deal

In mid-August 2026, U.S. President Donald Trump announced a pause on the threatened 50% tariffs on Canadian imports, following a last-minute deal between the two countries. The agreement, which Trump called "a very fair deal for both," also includes a reduction of U.S. tariffs on Canadian steel and aluminum by half, and a cut in auto tariffs to 15%. The pause is set to last three days, with further negotiations expected.

Canadian Prime Minister Mark Carney acknowledged the progress but said "key work remains" to finalize a broader trade agreement. The deal averted an immediate crisis, but both sides indicated that more discussions are needed to reach a permanent resolution.