There has been another delay in the tariff negotiations between the United States and Canada. U.S. President Donald Trump delayed by three days the planned implementation of a 50% tariff on goods worth 30 billion Canadian dollars that Canada is due to send to the United States.
The decision was announced after Trump spoke by phone with Canadian Prime Minister Mark Carney on Tuesday. Carney's office said the two leaders discussed the ongoing negotiations. They spoke again by phone after their representatives failed to reach an agreement in talks on Monday.
Agreement announced subject to completion of documents
In a statement posted on Truth Social, Trump said an agreement had been reached between the United States and Canada, subject to the completion of the documents. He also said the Keystone XL oil pipeline project, which was halted a long time ago, could be reconsidered.
The tariffs had been expected to take effect after midnight on Wednesday. In a statement on Tuesday night, Trump postponed their implementation by three days.
Automobiles are a major point of disagreement in the negotiations
Tariffs on automobiles shipped from Canada to the United States are a major point of disagreement in the U.S.-Canada talks, which have continued for weeks.
On July 20, Trump decided to impose a 50% tariff on certain Canadian products starting August 19, invoking Section 338 of the Tariff Act of 1930. When launching a trade war against Canada last year, the U.S. president argued that Ottawa had imposed discriminatory measures on U.S. dairy products, automobiles and alcoholic beverages.
Canada seeks removal of tariffs on industrial products
Canadian Trade Minister Dominic LeBlanc is continuing negotiations to remove the tariffs imposed under Section 338, as well as duties on certain industrial products, including steel, aluminum, automobiles and lumber.
The United States, meanwhile, wants Canada to end its boycott of American alcoholic beverages and return those products to Canadian store shelves. The boycott has adversely affected alcohol producers in the United States.
