Trump announces temporary pause on Canada tariffs, citing new deal

President Donald Trump said he is pausing for three days the new 50% tariffs on Canadian goods that were set to go into effect early Wednesday, citing a deal between the U.S. and Canada.

"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 said in a social media post on Tuesday night.

The new tariffs, targeting dozens of products from hockey sticks to wine, were set to go into effect at 12:01 a.m. ET on Wednesday.

Trump confirmed Wednesday that he had a "very good conversation" with Canadian Prime Minister Mark Carney on Tuesday night, repeating that he'd struck a deal to avert a 50% American tariff on a hodgepodge of Canadian goods for now.

"Yeah, we had a very good conversation with the Prime Minister last night, and we've come to a deal with Canada. As you know, the 50% tariffs across the board were going on against Canada today," Trump said Wednesday.

The president claimed that as part of the deal, Canadian tariffs on American agricultural goods would be "non-existent."

"The tariffs will be non-existent for our farmers. Our farmers were paying tremendous tariffs into Canada. And those tariffs are going to be totally eviscerated down to zero," Trump noted.

Canada's latest statement on the matter reflects that while "substantial progress" has been made, important work remains.

"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.

When later asked by a reporter whether the deal would reduce tariffs on Canadian steel and aluminum, Trump added, "Well, we're looking at that."

The U.S. trade representative's office on X responded to Trump's announcement Tuesday, providing a bit of insight into what a final deal might entail.

"The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions that will continue to protect our market and American workers, along with our Canadian partners," the USTR posted.

Trump had suggested the deal might include a renewed effort to build the Keystone Pipeline, despite the project being canceled in 2021 after years of criticism about the project's environmental impact.

"Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" Trump added in the post.

Due to exemptions on key goods, the tariffs were expected to hit only a fraction of U.S. imports from Canada.

Still, the list of affected goods features an array of food items such as dairy products, honey, whey protein and molasses; as well as alcoholic beverages like whiskey and vodka.

Trump sought to impose the tariffs under a legal authority enshrined in section 338 of the Tariff Act of 1930, which allows the president to enact levies up to 50% for countries found to have discriminated against the U.S. relative to their treatment of other nations.

The provision has never been invoked before, meaning the move lacks judicial precedent, Abigail Watt, an economist at UBS, said in a memo shared with ABC News.