WASHINGTON, D.C. / RankWire.AI / – U.S. President Donald Trump has postponed new 50% tariffs on selected Canadian imports for three days as bilateral trade talks continue. The duties were due to begin on August 19. Trump said both countries had reached an understanding that still required final documents. Canadian Prime Minister Mark Carney said substantial progress had been made, while stressing that negotiators still had significant work to complete.
The temporary delay moves the new tariff deadline to Saturday, August 22. Washington announced the additional duties in July under Section 338 of the Tariff Act of 1930. The measures cover selected Canadian goods even when they qualify for preferential treatment under the U.S.-Mexico-Canada Agreement. The White House connected the tariff action to disputes over Canadian policies affecting dairy products, alcoholic beverages and motor vehicles.
Several product categories fall within the planned tariff package, including Canadian wine, cement and sporting goods. U.S. authorities excluded energy, potash and certain other products from the new Section 338 charges. Goods already covered by separate Section 232 tariffs also sit outside the additional duties. Existing U.S. tariffs on Canadian steel, aluminum and automobiles remain in place and form a separate part of the ongoing trade discussions.
Trade talks continue as deadline moves
Officials from both governments continued negotiations in Washington following the tariff postponement. Their talks cover market access, digital trade, economic security commitments and existing sectoral measures. U.S. officials have said the discussions produced a framework for an agreement, but neither side has published a final text. Carney has continued to describe the negotiations as incomplete, while Canadian officials remain engaged on tariffs affecting several major export industries.
Canada also maintains countermeasures on certain U.S. steel, aluminum and automotive products. The two governments have discussed agricultural access and restrictions affecting sales of U.S. alcoholic beverages in Canadian provinces. Those matters remain separate from the new Section 338 duties now scheduled for August 22. The three-day pause only delays the latest tariff package and does not cancel other trade measures already operating between the neighboring economies.
USMCA rules remain central to tariff dispute
The USMCA continues to provide tariff-free access for much of the merchandise traded between Canada and the United States. Canada says about 85% of its exports to the U.S. market currently enter without tariffs under the pact. The new Section 338 duties differ because they apply to designated products regardless of USMCA eligibility. Canada has challenged several U.S. trade measures while continuing direct negotiations with the Trump administration over unresolved commercial issues.
As of August 20, neither government had released a completed bilateral agreement settling the latest tariff dispute. The postponement keeps the new 50% duties from taking effect before the August 22 deadline. Trump has said the countries reached an understanding, while Canada has stated that substantial work still remains. The latest pause therefore leaves the announced tariffs temporarily suspended as officials continue work on remaining terms and the formal documents needed to complete an agreement.