Donald Trump announced on Truth Social that he has reached a deal with Canada and will pause the 50 per cent tariffs set to take effect on Wednesday for three days. The levies, covering $20bn of Canadian goods including cement and hockey sticks, were delayed after intensive talks.

Prime Minister Mark Carney confirmed the postponement until Friday, saying substantial progress has been made but important work remains. The White House said Canada committed to remove discrimination against US businesses, and US Trade Representative Jamieson Greer outlined that the deal will include comprehensive market access, economic security commitments, and digital trade alignment.

Business groups welcomed the relief but warned that an extension does not provide the certainty of a signed interim agreement. Candace Laing of the Canadian Chamber of Commerce noted businesses may not close, yet uncertainty persists. Brian Kingston of the Canadian Vehicle Manufacturers’ Association said prolonged duties have strained the auto sector, causing factory closures and job losses.

Trump also revived talk of the Keystone XL pipeline, suggesting the project could be resurrected as part of the broader bargain. Canada supplies more than 4mn barrels per day of crude to the US, accounting for about 60 per cent of total US crude imports.