Less than two hours before the U.S.’s 50% tariffs on Canadian goods were scheduled to take effect, President Donald Trump announced a three-day delay on the import duties after reportedly reaching a trade agreement with the northern neighbor.
“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 finalization of documents, have a DEAL!" President Trump wrote on Truth Social. “The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave.”
Carney Denies Reaching Final Deal
Roughly an hour after President Trump’s statement, Canadian Prime Minister (PM) Mark Carney affirmed that the two countries have yet to finalize a deal after weeks of talks since President Trump signed the executive orders imposing the tariffs.
“Substantial progress has been made, although there is important work still to be done,” PM Carney refuted.
My statement on ongoing Canada-U.S. trade negotiations: pic.twitter.com/rzWZJFYe8e
— Mark Carney (@MarkJCarney) August 19, 2026
The tariffs are now scheduled to take effect on Aug. 21, 2026 at 12:01 a.m.
The Keystone XL Pipeline
The Keystone XL pipeline President Trump references is a proposed extension of the 2,151-mile oil pipeline known as the Keystone Pipeline System. The 16-year-old pipeline serves as a crude oil transporter, moving tar sands crude oil from Alberta, Canada to several refineries, oil tank farms, and an oil pipeline distribution center across the states.
According to Britannica, data gathered from 2012 to 2022 shows that the pipeline moves between 550,000 and 650,000 barrels of crude per day (23.1 million and 27.3 million).
The extension – which was rejected by former Presidents Barack Obama and Joe Biden yet championed by President Trump during his first term – was expected to transport an additional 830,000 barrels per day from Alberta to the Gulf Coast.
According to the Natural Resources Defense Council (NRDC), environmental reviews from the second Obama administration and the first Trump administration found that the extension would not have lowered gas prices.
