Canada pauses 50% U.S. tariffs for three days as trade talks intensify
Trade Minister LeBlanc and negotiator Charette meet with U.S. officials Wednesday as deadline extends. Alcohol bans, dairy quotas, auto tariffs on table.
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Canada's Trade Minister Dominic LeBlanc and chief negotiator Janice Charette met with United States Trade Representative Jamieson Greer in Washington on Wednesday at 11:15 a.m. ET, as negotiations continued under a three-day pause on 50 per cent tariffs on Canadian goods worth $28 billion.
President Donald Trump announced the tariff pause about 12 hours earlier, extending the deadline from Wednesday to 12:01 a.m. ET Saturday. Trump had threatened the tariffs over Canada's dairy supply management system, retaliatory tariff-free auto quotas and provincial bans on American alcohol in most provinces.
The White House proclamation said "Canada has expressed a commitment" to remove "discriminations" that the U.S. said did not apply to other countries — specifically provincial alcohol bans on U.S. products, Canada's retaliatory quota on tariff-free American vehicle imports and the dairy supply management system. Canada offered to drop alcohol bans, fix dairy quotas and remove auto tariffs ahead of the August 19 deadline.
The U.S. Trade Representative said on social media the deal will include comprehensive market access for all American goods, economic security commitments and digital trade alignment. Prime Minister Mark Carney said in a statement that "substantial progress" has been made and "more work remains." He added: "While we continue this work, Canada remains focused on building a stronger, more independent, and more competitive economy at home."
By the numbers
How much were the paused Canadian tariffs worth?
$28 billion in Canadian goods were subject to the 50 per cent tariffs that were paused.
When does the tariff pause end?
The pause on tariffs extends until 12:01 a.m. ET on Saturday, August 22, 2026.
What three issues were driving the U.S. tariff threat?
The United States cited Canada's dairy supply management system, provincial bans on American alcohol products, and Canada's retaliatory quota on tariff-free American vehicle imports.
