U.S. delays 50 per cent tariffs on some Canadian goods as Canada-U.S. talks continue

The United States has agreed to delay the implementation of a 50 per cent tariff on a range of Canadian goods, giving Canada and the U.S. more time to negotiate outstanding trade issues.

Prime Minister Mark Carney said Tuesday that Canada and the United States had made substantial progress during intensive discussions aimed at addressing trade issues and providing greater certainty for Canadian businesses, workers, farmers and families.

The additional U.S. tariffs had been scheduled to take effect Aug. 19. The United States has now postponed implementation until the end of Aug. 21.

The delay covers additional duties announced by U.S. President Donald Trump targeting certain Canadian imports of alcoholic beverages, dairy products, motor vehicles and auto parts.

In a proclamation signed Tuesday, Trump said the tariffs would now take effect at 12:01 a.m. Eastern time on Aug. 22.

The U.S. administration has argued that Canadian trade policies disadvantage American products, including through restrictions affecting U.S. alcohol, dairy and automotive exports.

Canada has disputed the U.S. characterization of its trade measures and has continued negotiations with Washington.

Carney said there was still important work to be done, despite the progress made in recent weeks.

“While we continue this work, Canada remains focused on building a stronger, more independent, and more competitive economy at home,” Carney said in a statement issued Tuesday.

The three-day delay comes as Canadian and U.S. officials continue discussions aimed at resolving the outstanding trade issues.

The latest U.S. proclamation also directs American agencies to suspend collection of the additional duties during the delay and make any necessary changes to the U.S. tariff schedule.

For Canadian businesses and exporters, the postponement provides additional time before the threatened 50 per cent duties could take effect.

The new deadline is 11:59 p.m. Eastern time on Aug. 21, with the tariffs currently scheduled to begin at 12:01 a.m. Eastern time on Aug. 22.