US President Donald Trump has delayed new 50% tariffs on certain Canadian imports for three days as Washington and Ottawa continue trade negotiations.
The tariffs were due to take effect at 12:01 a.m. Eastern Time on 19 August. However, an official White House proclamation has moved the effective date to 12:01 a.m. on 22 August.
The White House said the suspension follows developments in negotiations between the United States and Canada. According to the proclamation, Canadian authorities have expressed a commitment to address the trade measures at the centre of the dispute.
The three-day extension gives both sides additional time to continue negotiations before the new duties take effect.
U.S. announces new tariffs on imports from more than 60 countries
Tariffs postponed until 22 August
Trump initially announced the additional tariffs in July under Section 338 of the Tariff Act of 1930.
The measures impose an additional 50% tariff on specified Canadian products. They target issues involving alcoholic beverages, dairy products and motor vehicles.
The White House had originally set 19 August as the effective date.
However, Trump said the public interest now requires a three-day suspension because of the status of negotiations between the two countries.
The new deadline applies to the additional duties introduced through three separate proclamations covering the areas under dispute.
US and Canada continue negotiations
Talks continued after the tariff deadline was extended.
Trump has indicated that the two countries are moving towards an agreement. Canadian Prime Minister Mark Carney has also acknowledged progress, while stressing that further work remains.
The proposed 50% tariffs cover nearly US$20 billion of Canadian goods, according to Reuters. Some of the affected products would otherwise receive preferential treatment under the United States-Mexico-Canada Agreement (USMCA).
Several other tariff issues are also part of the negotiations.
One proposal could reduce US tariffs on Canadian-made cars and trucks from 25% to 15%. Canada is seeking a lower rate of 10%, according to Reuters. However, no agreement on the rate has been announced.
The two sides also remain divided over how vehicle content should be treated when calculating tariffs.
Steel and aluminium also in focus
Steel and aluminium are another major part of the negotiations.
Under proposals being discussed, US tariffs on Canadian steel and aluminium could fall from 50% to 25%. For steel, the lower rate could apply within an annual quota, according to Reuters.
These terms remain under negotiation and have not been formally agreed.
For now, the confirmed development is the three-day suspension of the new Section 338 tariffs.
Unless another change is announced, the additional 50% duties are now scheduled to take effect at 12:01 a.m. Eastern Time on 22 August.
