The US president has paused a threatened tariff on Canada, following reports of progress in trade negotiations.
The US president has cancelled a planned tariff on Canada just hours before it was set to take effect. Canadian Prime Minister Mark Carney stated that 'substantial progress' had been made on a trade deal, though further work remains. The decision follows a year of strained relations between the two nations, marked by reciprocal tariffs and public disputes.
Trade between the US and Canada reached approximately $909 billion in 2024, according to the US trade representative. The move comes after the White House imposed a 25% tariff on Canada in February 2025, citing concerns over immigration and drug trafficking. Canada responded with a reciprocal levy, calling the US actions 'unwarranted and unreasonable.'
Why it matters
The cancellation may signal improved trade relations between the US and Canada.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
Watch whether trade talks resume with renewed momentum.
This section reflects Dumpling editorial interpretation and is provided for context only.