economy
Trump says he paused 50% tariffs on some Canadian goods as deal being finalized
Updated on: August 18, 2026 / 11:37 PM EDT / CBS/AP
TL;DR
- President Trump has paused 50% tariffs on Canadian goods scheduled to take effect.
- The pause is for a three-day period, based on ongoing negotiations for a trade deal between the U.S. and Canada.
- The 50% tariffs would have affected $20 billion worth of Canadian products.
- Canada had threatened to retaliate with its own levies, potentially escalating a trade dispute.
- Both countries have significant trade volumes, with nearly 72% of Canada's goods exports going to the U.S.
- The Trump administration accused Canada of discriminatory actions regarding certain American goods.
- The tariffs were invoked under Section 338 of the U.S. Tariff Act of 1930, a provision not previously used.
- This section allows the president to impose up to 50% tariffs on imports from countries discriminating against U.S. businesses.