U.S. President Donald Trump (L) welcomes Canadian Prime Minister Mark Carney outside the West Wing of the White House on October 07, 2025 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)
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With just hours to go until the U.S. was set to impose 50% tariffs on billions of dollars’ worth of imported goods from Canada, the two nations struck a deal that will pause the new taxes and give negotiators more time to find a longer-term agreement.
What they’re saying:
President Donald Trump announced the delay late Tuesday, explaining that the duties were on hold “based on the fact that Canada and the U.S., subject to the finalization of documents, have a DEAL!”
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The backstory:
The proposed tariffs, which would have gone into effect at 12:01 a.m. on Wednesday, would have covered around 5% of the goods Canada ships to the U.S. each year and would have included $20 billion worth of items ranging from hockey sticks to tongue depressors.
Why you should care:
In addition to potentially driving up the prices in the U.S. for those products, threats by Canada of retaliatory tariffs could have their own economic impact if implemented. The neighboring nations sold each other $880 billion worth of goods and services in the past year alone.
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