Canadian tariff paused by Trump

The Guardian - Donald Trump has paused his threatened punitive tariff on Canada just hours before it was due to come into effect. After Trump’s announcement, the Canadian prime minister, Mark Carney, said “substantial progress” had been made towards a trade deal, but more work was needed.

Tuesday’s 11th-hour backdown comes after a contentious year for the two countries, with the longstanding alliance strained by tit-for-tat tariffs and online broadsides in which Trump has mused about wanting to turn Canada into a US state.

In February 2025, the White House hit Canada with a 25% tariff, citing what it regarded as inadequate progress in curbing cross-border illegal immigration and drug trafficking. In retaliation, Canada announced a reciprocal levy, calling the US’s actions “unwarranted and unreasonable”.

Historically, Canada and the US have been strong trading partners. In 2024, trade between the countries was estimated to be roughly $909bn, according to the office of the US trade representative.