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Trump says US and Canada have reached last-minute deal to delay 50% US tariffs on Canadian imports

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Trump says US and Canada have reached last-minute deal to delay 50% US tariffs on Canadian imports
News

News

Trump says US and Canada have reached last-minute deal to delay 50% US tariffs on Canadian imports

2026-08-19 11:25 Last Updated At:08-20 11:53

WASHINGTON (AP) — President Donald Trump said Tuesday he was delaying the 50% U.S. tariffs on $20 billion worth of Canadian imports after the two countries reached a last-minute deal less than two hours before the sanctions were to go into effect.

The announcement, which Trump made on his social media platform, buys time for more negotiations and avoids, for now, another strain in already tense relations between the historic allies.

“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump posted on Truth Social.

If they had gone into effect as scheduled at 12:01 a.m. Wednesday, Trump’s import taxes would have hit Canadian products ranging from hockey sticks to tongue depressors.

But the political impact would likely have been bigger than the economic one. Canada had threatened to retaliate against any new tariffs with levies of its own, aggravating a trade fight between countries that sold each other $880 billion worth of goods and services last year.

A White House proclamation said Canada had expressed a commitment to remove measures the Trump administration considers discriminatory against U.S. alcohol, dairy and motor vehicle exports. Canada did not immediately confirm those commitments.

Canadian Prime Minister Mark Carney said in a statement “substantial progress” had been made but that important work remained, confirming Canada had agreed to the three-day delay while negotiations continued.

Carney and Trump had spoken twice by phone in the past two days about the ongoing negotiations, including a call Tuesday afternoon, Carney’s office said, underscoring the last-minute push for a deal.

Both countries had reason to step back from the brink. Nearly 72% of Canada’s goods exports last year went to the United States. And the Trump administration would be taking a risk by imposing a hefty new tariff — paid by U.S. importers who try to pass along the cost to consumers via higher prices — ahead of November’s midterm elections. U.S. voters are already frustrated with the high cost of living.

“I don’t think either side really wants these tariffs to come into effect,’’ Ryan Majerus, a partner at King & Spalding and a former U.S. trade official, said before the delay was announced. “There’s a pretty strong push on both sides to find an off-ramp here.’’

Canadian Chamber of Commerce President and CEO Candace Laing said in a statement that the three-day tariff delay offered businesses some relief but fell short of the certainty a signed interim agreement would provide.

“This limbo state is not anyone’s preferred outcome,” she said, urging negotiators to reach a deal quickly.

Trump’s approach to dealing with Canada marks an extraordinary departure from the traditionally cooperative relationship between the two countries. Trump has hit Canadian goods with tariffs — in a push to bring manufacturing back to the U.S. — and has repeatedly made inflammatory comments about turning Canada into America’s 51st state.

Trump has made tariffs the centerpiece of his second-term economic agenda. Last year, he imposed double-digit import taxes on almost every country, justifying them by declaring the longstanding U.S. trade deficit a national emergency. The Supreme Court in February ruled that he’d overstepped his authority, striking down those tariffs and setting the stage for the federal government to pay refunds to importers.

So Trump has looked for other legal authority to impose tariffs.

To hit Canada, he reached back to the Great Depression, invoking Section 338 of the Tariff Act of 1930 to threaten 50% tariffs on products that account for about 5% of Canadian exports to the United States.

Nearly a century ago, with the U.S. and world economies in collapse, Congress passed the 1930 tariff law, imposing taxes on imports from around the world. Known as the Smoot-Hawley tariffs, named for their congressional sponsors, they are notorious among economists and historians for limiting world commerce and making the Great Depression worse.

Section 338 tariffs have never been used before.

Section 338 authorizes the president to impose tariffs of up to 50% on imports from countries that have discriminated against U.S. businesses. No investigation is required to justify the levies. Nor is there any limit on how long the tariffs can stay in place.

The U.S. is renegotiating a North American trade pact — the US-Mexico-Canada Agreement — that Trump strong-armed America’s neighbors into accepting in his first term. The threat of Section 338 tariffs gives the United States leverage to seek fresh concessions from Ottawa.

Gillies reported from Toronto.

Canada-U.S. Trade Minister Dominic LeBlanc makes brief comments to reporters outside the U.S. Department of Commerce following a meeting with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, in Washington, Monday, Aug. 17, 2026. (Kelly Geraldine Malone/The Canadian Press via AP)

Canada-U.S. Trade Minister Dominic LeBlanc makes brief comments to reporters outside the U.S. Department of Commerce following a meeting with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, in Washington, Monday, Aug. 17, 2026. (Kelly Geraldine Malone/The Canadian Press via AP)

United States Trade Representative Jamieson Greer, center, leaves the U.S. Department of Commerce following a meeting with Canadian officials, in Washington, Monday, Aug. 17, 2026. (Kelly Geraldine Malone/The Canadian Press via AP)

United States Trade Representative Jamieson Greer, center, leaves the U.S. Department of Commerce following a meeting with Canadian officials, in Washington, Monday, Aug. 17, 2026. (Kelly Geraldine Malone/The Canadian Press via AP)

And to think, Kyle Whittingham said he wanted to put an end to all the drama around Michigan.

Nobody could have scripted a more dramatic finish to the former Utah coach’s Michigan debut Saturday night.

No. 16 Michigan beat Western Michigan 13-12 on Saturday only after it was ruled that a second remained following Bryce Underwood’s unsuccessful Hail Mary attempt, even though the scoreboard clock indicated no time was left. Given a second chance, Underwood and JJ Buchanan connected on a remarkable 47-yard touchdown.

Just like that, an opening weekend filled with snoozers and blowouts got a moment worth talking about.

The second-chance Hail Mary led to the incomprehensible scene of the Michigan Stadium crowd storming the field to cheer the winningest program in Bowl Subdivision history eking out a victory over a Mid-American Conference school. It also capped an eventful opening weekend for new coaches.

Michigan brought Whittingham in to stabilize a program following the firing and arrest of Sherrone Moore, who lasted just two seasons. That followed the tumultuous tenure of Jim Harbaugh that included a 2023 national title as well as a spying scandal and NCAA sanctions for recruiting violations.

Whittingham spoke on multiple occasions this offseason about ending all that off-field drama. On the field, it appears he still has work to do.

Michigan committed three turnovers without forcing any, and the Wolverines allowed Western Michigan to have possession for over two-thirds of the game. Perhaps the spectacular finish will spark Underwood, who struggled for much of the night and had an inconsistent freshman season after arriving at Michigan as the nation’s No. 1 prospect in his class.

At least Whittingham won his debut. Oklahoma State's Eric Morris wasn't so fortunate.

Oklahoma State is coming off a 1-11 season but seemed a likely candidate for improvement after Morris added 91 newcomers, including 21 who had played for him at North Texas. The headliner was Drew Mestemaker, who threw for a Bowl Subdivision-leading 4,379 yards at North Texas last season.

But the Cowboys lost 24-10 to Tulsa, an indication Morris' rebuild could take some time. Mestemaker went 29 of 49 for 241 yards with two interceptions and one touchdown.

One coach who did have a successful debut at his new school was LSU's Lane Kiffin, who had been the center of attention throughout the offseason. When the NCAA’s new eligibility rules blew up in courtrooms all over the country, LSU made no secret of its interest in bringing back not just fifth-year players who went to court but players who had signed professional contracts.

This issue lingered late into the week, including the surreal spectacle of the SEC battling LSU in multiple courtrooms. LSU eventually decided against placing onetime pros Dae’Quan Wright and Zxavian Harris on its roster in advance of its season opener.

No. 11 LSU didn't need the extra help as it steamrolled Clemson 51-10, handing Dabo Swinney the most lopsided loss of his head coaching career.

It's the latest setback for Swinney as Clemson attempts to bounce back from its 7-6 finish last year. Those 2016 and 2018 national titles seem so long ago now.

No. 2 Oregon faced an early 10-point deficit before rallying to beat Boise State 34-27. Dante Moore threw a tiebreaking 62-yard TD to Dakorien Moore with 8:45 left.

The game was reminiscent of their 2024 matchup, when Oregon needed a field goal as time expired for a 37-34 home victory over a Boise State team featuring Heisman Trophy runner-up Ashton Jeanty.

That Broncos team went on to reach the College Football Playoff, and Oregon remained unbeaten until a Rose Bowl quarterfinal loss to eventual national champion Ohio State.

It wouldn’t be a surprise if both teams are back in the playoff this year.

Boise State's early-season schedule could go a long way toward sorting out which team has the best shot at earning the Group of Six's playoff berth.

Memphis (2-0) had a notable season-opening win at UNLV last week and will travel to Boise State next weekend. Defending MAC champion Western Michigan, which made quite an impression in its narrow loss to Michigan, will host Boise State on Sept. 26.

No. 6 Indiana’s new faces helped the defending national champions roll to a 52-16 victory over North Texas in their opener.

Former TCU quarterback Josh Hoover went 13 of 16 for 231 yards with four touchdowns in his first game stepping in for Heisman Trophy winner and No. 1 overall draft pick Fernando Mendoza. Boston College transfer Turbo Richard scored twice and Michigan State transfer Nick Marsh got the Hoosiers’ first touchdown with a one-handed grab.

One sign of concern for Indiana is that a defense that allowed the second-fewest points per game of any FBS team last year struggled to slow down North Texas.

Ohio State’s Jeremiah Smith and Miami’s Malachi Toney have wasted no time launching their respective Heisman Trophy campaigns.

Smith caught eight passes for 151 yards and two touchdowns in the first half alone as No. 1 Ohio State opened its season with a 56-3 blowout of Ball State on Saturday. Smith celebrated his second touchdown by doing a Heisman pose.

One night earlier, Toney performed a similar celebration during his three-touchdown performance in the seventh-ranked Hurricanes’ 45-6 victory at Stanford. Toney set a school single-game record with 234 yards receiving.

They're not the only Heisman contenders from their own teams.

Ohio State's Julian Sayin, who finished fourth in the Heisman voting last season, went 21 of 25 for 320 yards with three touchdowns. He also ran for a touchdown.

Miami's Darian Mensah, who led Duke to an Atlantic Coast Conference title last year, threw five touchdown passes in his first game with his new team..

Sunday's lineup includes an early Apple Cup between No. 17 Washington and Washington State before prime-time showdowns: No. 4 Notre Dame against Wisconsin at Lambeau Field in Green Bay, Wisconsin, and No. 9 Mississippi faces No. 24 Louisville in Nashville, Tennessee. The Labor Day capper sees Mike Norvell and Florida State hosting No. 19 SMU and dynamic quarterback Kevin Jennings.

The next AP Top 25 rankings to sort it all out will be released Tuesday.

Sign up for Top 25 poll alerts here, visit the Top 25 here and see AP’s full college football coverage here

Oregon wide receivers Evan Stewart (7) and Dakorien Moore (1) celebrate Moore's touchdown during the second half of an NCAA college football game, Saturday, Sept. 5, 2026, in Eugene, Ore. (AP Photo/Lydia Ely)

Oregon wide receivers Evan Stewart (7) and Dakorien Moore (1) celebrate Moore's touchdown during the second half of an NCAA college football game, Saturday, Sept. 5, 2026, in Eugene, Ore. (AP Photo/Lydia Ely)

Oregon wide receiver Dakorien Moore (1) celebrates his touchdown run during the second half of an NCAA college football game against Boise State, Saturday, Sept. 5, 2026, in Eugene, Ore. (AP Photo/Lydia Ely)

Oregon wide receiver Dakorien Moore (1) celebrates his touchdown run during the second half of an NCAA college football game against Boise State, Saturday, Sept. 5, 2026, in Eugene, Ore. (AP Photo/Lydia Ely)

Indiana quarterback Josh Hoover (10) hands off to running back Turbo Richard (1) during the first half of an NCAA college football game against North Texas, Saturday, Sept. 5, 2026, in Bloomington, Ind. (AP Photo/Doug McSchooler)

Indiana quarterback Josh Hoover (10) hands off to running back Turbo Richard (1) during the first half of an NCAA college football game against North Texas, Saturday, Sept. 5, 2026, in Bloomington, Ind. (AP Photo/Doug McSchooler)

Missouri wide receiver Cayden Lee, left, scores past Arkansas-Pine Bluff defensive back Na'il Johnson (38) during the first half of an NCAA college football game Thursday, Sept. 3, 2026, in Columbia, Mo. (AP Photo/Jeff Roberson)

Missouri wide receiver Cayden Lee, left, scores past Arkansas-Pine Bluff defensive back Na'il Johnson (38) during the first half of an NCAA college football game Thursday, Sept. 3, 2026, in Columbia, Mo. (AP Photo/Jeff Roberson)

The Colorado team celebrates a win over Georgia Tech after an NCAA college football game, Thursday, Sept. 3, 2026, in Atlanta. (AP Photo/Mike Stewart)

The Colorado team celebrates a win over Georgia Tech after an NCAA college football game, Thursday, Sept. 3, 2026, in Atlanta. (AP Photo/Mike Stewart)

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