Canada, U.S. 'moving towards an agreement,' Carney says after tariff pause

U.S. President Donald Trump said Wednesday that the United States and Canada have reached a trade deal following a conversation with Prime Minister Mark Carney. "We've come to a deal with Canada," Trump said, calling it a "very fair deal for both." He said threatened 50 per cent tariffs on Canadian goods have been held back for three days while documents are finalized.

After weeks of intense trade talks, which came with the threat of sweeping 50 per cent tariffs hanging over the Canadian economy, Canada and the United States are "moving towards an agreement", that reinforces the "Canadian advantage," Prime Minister Mark Carney said on Wednesday.

With less than two hours to go before the deadline for his new tariffs, U.S. President Donald Trump had announced on Tuesday night that the levies had been paused, claiming a deal could be on the table.

"We are now moving towards an agreement that reinforces that Canadian advantage, including by securing the best terms in each of Canada's most important strategic sectors and providing greater certainty about our future trading relationship," Carney posted on social media on Wednesday.

Carney is scheduled to chair a cabinet meeting on Wednesday, following which he is expected to chair a meeting of Canada's premiers.