US and Canada Reach Trade Deal, Averting 50% Tariffs

Economics

USA, Canada

US President Donald Trump paused scheduled 50% tariffs on Canadian goods for three days after announcing that the US and Canada have reached a trade deal.

Key points

  • The 50% tariffs were set to apply to nearly $20bn of Canadian imports including wine, dairy, cement, clothing, and hockey equipment.
  • Negotiations involved discussions over reducing US tariffs on Canadian autos and removing provincial bans on American liquor sales.
  • US President Donald Trump stated that the final agreement could potentially allow for the revival of the Keystone XL pipeline.

Why it matters

A successful trade agreement averts steep tariffs that businesses warned would damage both economies and disrupt supply chains between the two major trading partners.

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