US, Canada reach trade deal to avert steep tariffs, Trump says | Business and Economy News

BREAKINGBREAKING,

Trump announces pause on 50 percent duty on Canadian exports shortly before midnight deadline.

The United States and Canada have reached a deal to avert steep tariffs on billions of dollars of Canadian goods, US President Donald Trump has announced.

Trump made the announcement shortly before a 50 percent duty was due to take effect at midnight.

The 11th-hour reprieve came after Trump and Canadian Prime Minister Mark Carney on Tuesday held talks aimed at finding common ground after weeks of fraught trade negotiations.

The tariffs would have applied to some $20.2bn worth of Canadian exports, affecting goods ranging from electronics and industrial machinery, to furniture, dairy products and wine.

In post on Truth Social on Tuesday, Trump said the sides had reached a deal “subject to finalization of documents.”

Trump did not provide details of the agreement, but appeared to link the breakthrough to his efforts to revive the Keystone XL Pipeline.

The proposed pipeline, which has faced strong opposition and numerous delays since it was first proposed in 2008, would transport about 830,000 barrels of crude oil each day between the Canadian province of Alberta and the US state of Nebraska.

Former US President Joe Biden revoked a key permit for the US stretch of the pipeline in 2021 on environmental and economic grounds, effectively killing the project.

“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump said in his social media post.

More to follow…