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Trump pauses 50% tariffs against Canada for three days
The temporary halt comes hours before the US plans to impose 50% levies on certain Canadian imports, while USD/CAD fell 0.1% to about 1.3875.
FXStreet reports that US President Donald Trump said he has paused 50% tariffs against Canada for a three-day period following overnight negotiations with Canadian Prime Minister Mark Carney and progress toward finalizing documents.
The announcement arrives hours before the US is set to impose 50% levies on specific Canadian goods, including hockey sticks and wine.
FXStreet also notes that the Canadian dollar is strengthening after the comments, with the USD/CAD pair down 0.15% on the day to 1.3875 at the time of writing.
The outlet describes tariffs as customs duties on imported merchandise and reiterates that tariffs are often used as protectionist tools, with some economists arguing they can raise prices over the long run and contribute to trade retaliation.