President Donald Trump on August 20 confirmed that the United States and Canada have reached a "very fair" trade agreement that eliminates tariffs on exports from American farmers and businesses to Canada.
Speaking to reporters, Trump emphasized: "We will have no tariffs going into Canada. There will be no tariffs on farmers."
Earlier, on the evening of August 19, Trump announced he would suspend the 50% tariffs on Canada for three days, following a "positive" phone call with Canadian Prime Minister Mark Carney. The tariffs were scheduled to take effect on the morning of August 20.
On Truth Social, Trump wrote: "I have suspended the 50% tariff on Canada, which was set to take effect tomorrow morning, for a period of three days, because Canada and the United States, after completing the paperwork, have reached an AGREEMENT!"
The deal comes amid multiple rounds of negotiations between Washington and Ottawa. Prime Minister Carney said in a statement on August 19 that "significant progress has been made, although there remains important work to be done."
US and Canadian officials have not yet confirmed the full details of the agreement. The new tariffs were expected to apply to roughly $20 billion in imports, covering all goods regardless of eligibility under the US-Mexico-Canada Agreement.
According to Reuters, the automotive sector was a contentious point in the talks, citing two unnamed industry sources.
On August 18, during a meeting attended by US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, the two sides discussed reducing US Section 232 tariffs—imposed after Commerce Department investigations found imports threaten national security—on Canadian cars from 25% to 15%, with further reductions based on the proportion of US content in each vehicle.
Nearly 72% of Canada's exports last year went to the US. Trump's tariff actions during his second term have strained US-Canada trade relations, and the threatened additional 50% tariff would have worsened the pressure.
