US and Canada reach ‘very fair’ trade agreement, Trump says
Al Jazeera · 2026-08-19
Former President Donald Trump announced on Truth Social Tuesday that he had "paused the 50% Tariffs against Canada" for a three-day period, citing a "DEAL" between the two nations, subject to finalization. This development follows extensive negotiations between Washington and Ottawa, with comments from Carney on Tuesday confirming "substantial progress" but acknowledging "important work still to be done." Neither US nor Canadian officials have yet disclosed the full details of the agreement.
The previously threatened 50 percent tariffs, which Trump had scheduled to take effect the following day, would have impacted approximately $20bn worth of imports, applying universally regardless of eligibility for preferential treatment under the US-Mexico-Canada trade agreement. The auto sector has been a significant point of contention. On Monday, discussions involving US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick included proposals to cut the US’s Section 232 tariffs. These trade tensions have strained the US-Canada relationship, particularly given that nearly 72 percent of Canada’s goods exports last year were destined for the US, and the additional 50 percent tariff would have intensified existing pressures.
*The full article also explores the broader implications of these tariffs on various sectors and the historical context of trade relations under Trump's administration.*