WASHINGTON D.C Aug 18. 2026 — U.S. President Donald Trump has suspended the additional 50% tariffs on certain Canadian imports that were scheduled to take effect at 12:01 a.m. Eastern Time on August 19, 2026, according to statements attributed to the president early Wednesday.
The announcement came hours before the deadline, following intense last-minute negotiations between U.S. and Canadian officials. Multiple reports cited Trump saying he had “suspended half of tariffs on Canada,” while others described a full suspension of the new 50% duties.
The tariffs, announced on July 20, 2026, under Section 338 of the Tariff Act of 1930, targeted roughly $20–28 billion worth of Canadian products. Covered goods included wine, beer and other alcoholic beverages, dairy products, cement, hockey sticks, furniture, honey, and various other items. Unlike many earlier measures, the duties would have applied even to products qualifying for preferential treatment under the U.S.-Mexico-Canada Agreement (USMCA/CUSMA).
The White House had framed the action as a response to what it called Canada’s discriminatory trade practices, including retaliatory tariffs on U.S. automobiles, provincial restrictions on American alcohol sales, and limited access for U.S. dairy exporters under Canada’s supply-management system.
Canadian Prime Minister Mark Carney and senior trade negotiators, including Trade Minister Dominic LeBlanc, had been engaged in high-level talks in Washington in the days leading up to the deadline. Carney spoke by phone with Trump multiple times this week as both sides sought an agreement that could also ease existing tariffs on autos, steel, aluminum, and other sectors.
The suspension averts an immediate escalation in the ongoing North American trade dispute and provides breathing room for further negotiations. Details on the duration of the suspension and any accompanying concessions from Canada remain unclear at this early stage.
Markets and industry groups on both sides of the border had closely monitored the deadline, with the threatened tariffs expected to affect a relatively small share—about 5%—of total Canadian exports to the United States, though still significant for specific sectors.
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