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Trump pauses Canada tariffs, hints Keystone XL
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Trump paused 50% tariffs on Canada for three days, citing a pending deal. Keystone XL pipeline revival hinted, affecting $20bn trade.
Background
The US and Canada were on the brink of a trade war as Trump had threatened 50% tariffs on Canadian goods worth $20bn, set to take effect Wednesday. After urgent talks between Trump and Canadian PM Mark Carney, Trump announced a three-day pause, claiming a deal is close. He also hinted at reviving the Keystone XL pipeline, a controversial project blocked by previous administrations.
How it unfolded
- Aug 18, 2026Trump and Carney spoke late Monday, but talks did not convince Trump to hold off on tariffs.
- Aug 18, 2026 22:00Trump posted on Truth Social that he paused the 50% tariffs for three days, citing a pending deal, and hinted at reviving Keystone XL.
- Aug 19, 2026Carney said 'substantial progress' was made but more work needed. Tariffs were set to take effect Wednesday but are now delayed.
Who’s saying what
- Official
- Trump said the pause is based on a deal being finalized, and hinted Keystone XL 'may be awoken from the grave.'
- Official
- Canadian PM Mark Carney said 'substantial progress' was made towards a trade deal but more work is needed.
- Analysts
- Business leaders warn that the threat of higher duties has generated significant uncertainty and already affected sales.
Still unverified
Ottawa reportedly offered concessions like pressuring provinces to put US alcohol and wine back on shelves, per Canadian media.