United States President Donald Trump announced late last night that he was delaying the introduction of new 50 percent tariffs on Canadian goods, which were due to take effect at midnight, by three days, stating that the two countries had reached an agreement.
An hour later, Canadian Prime Minister Mark Carney said that "significant progress has been made, although there is still important work to be done," Reuters reports.
Trump wrote in a post on the Truth Social platform that he suspended the tariffs "given that Canada and the United States, subject to the finalization of documents, have reached an agreement."
Trump and Carney spoke yesterday, the second time this week, as their negotiators have been conducting intensive negotiations for weeks.
"Canada remains focused on building a stronger, more independent and competitive economy," Carney said.
According to the White House website, Trump said he had received assurances from Canada that it would address US concerns regarding tariffs on dairy products, alcoholic beverages and motor vehicles.
US officials did not provide additional details, and the Canadian government did not confirm the content of the agreement.
Almost 72 percent of Canada's exports last year were destined for the US market.
The Trump administration would have to be cautious about imposing a large new tariff - which would be paid by US importers and then passed on to consumers through higher prices - because of the November congressional elections, midway through the US president's term.
American voters are already frustrated with the high cost of living.
Canadians would like relief from U.S. tariffs on steel and aluminum, as well as softwood lumber, which America claims receives unfair government subsidies.
Trump has made tariffs a central part of his economic agenda for his second term. Last year, he imposed double-digit tariffs on imports from nearly every country in the world.
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