U.S. President Donald Trump has confirmed a three-day pause on new tariffs against Canada, pointing to a pending trade agreement between the two countries. The announcement arrived just hours before a fresh round of steep duties was set to take effect. Canadian officials say talks are close, though not yet finished.

Trump shared the update through a post on Truth Social Tuesday evening. The pause affects tariffs that were scheduled to hit Canadian goods at midnight. According to Trump, the delay depends on the final paperwork for a broader trade deal.

Trump Confirms the Tariff Pause on Truth Social

In his post, Trump wrote: “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! The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave! Thank you for your attention to this matter. President DONALD J. TRUMP”

This message confirmed what many trade watchers expected. Canada and the United States had reportedly reached an agreement, avoiding a sweeping 50 percent tariff hike. However, Trump’s wording made clear that the deal still needs formal sign-off.

The pause buys both sides extra time. Negotiators can finalize documents without the pressure of tariffs already in force. Meanwhile, businesses on both sides of the border can breathe a little easier, at least for now.

Carney Says Progress Has Been Made, But Work Remains

Prime Minister Mark Carney addressed the situation in a statement Tuesday evening. He said Canada and the United States had made “substantial progress” in trade negotiations. At the same time, he cautioned that “important work still needs to be done.”

Carney confirmed that Washington agreed to delay the 50 percent tariffs until the end of Aug. 21. This gives negotiators a short but critical window. Talks will continue during this period as both governments try to close remaining gaps.

The stakes are significant. Without a deal, roughly $28 billion worth of Canadian goods faced new tariffs. Products ranging from hockey sticks and honey to wine and cement were all on the list.

Canadian officials also pushed for relief on existing tariffs. Steel, aluminum, lumber, and autos remain sensitive areas in the broader trade relationship. Ottawa’s negotiating team, led by Canada-U.S. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette, worked directly with American counterparts in Washington, D.C.

Carney spoke with Trump by phone Tuesday, just hours before the tariffs were originally due to begin. That call appears to have played a direct role in securing the temporary pause. Still, officials on both sides stopped short of calling the deal final.

Keystone XL Pipeline Returns to the Conversation

Trump’s message did more than announce a tariff delay. He also raised the possibility of reviving the Keystone XL pipeline, a project that has been dormant for years. This addition surprised many, since trade talks had mostly focused on tariffs rather than energy infrastructure.

Former president Joe Biden revoked the pipeline’s permit on his first day in office. The Keystone XL project would have carried oil from Alberta to Nebraska. Trump has long criticized that decision and has pushed to reverse it since returning to office.

Earlier this year, Trump signed an executive order aimed at reviving parts of the Keystone project. His latest post went further, even including an illustration of himself symbolically driving the pipeline back into the ground. It remains unclear how much the pipeline actually factored into the trade discussions.

Analysts note that linking tariffs to energy policy is not new for Trump. Still, the exact connection between Keystone XL and this specific trade deal has not been explained. Canadian officials have not confirmed whether pipeline revival was part of the negotiations.

What Comes Next for Canada-U.S. Trade

The three-day pause gives both governments a short runway. Trump pauses Canada tariffs for now, but the underlying deal still needs formal documentation before it becomes permanent. Until then, businesses and exporters remain in a holding pattern.

Canadian officials have not released full details of the tentative agreement. It also remains unclear whether tariffs on steel, aluminum, lumber, and autos will see any changes. These sectors have been consistent points of friction throughout the broader trade relationship.

For now, the immediate crisis appears to have been avoided. Canadian exporters avoid, at least temporarily, a jump in costs across dozens of product categories. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette are expected to continue talks in the coming days.

Both sides face a tight deadline. As the Aug. 21 cutoff approaches, negotiators will need to finalize language quickly. Trump pausing Canada tariffs buys time, but it does not guarantee a lasting resolution.