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Trump pauses planned 50% Canada tariff for three days
The delay reduces immediate uncertainty for Canadian businesses, but Ottawa has not confirmed a fully signed trade package, keeping scope unclear for CAD.
Canada has avoided an immediate 50% tariff on a wide range of U.S. products for three days, with U.S. President Donald Trump pausing the planned levy while both sides finalize paperwork for what he called a deal, according to Action Forex.
The tariff was set to take effect at midnight, so the postponement is meant to reduce near-term risk for Canadian businesses and gives the Canadian dollar a further reason to hold recent gains, though the source says the currency response has been muted because the broader trade normalization is not yet confirmed.
Action Forex notes the key issue is uncertainty around scope: Ottawa has not confirmed detailed terms and the paperwork remains unsigned, with Canadian Prime Minister Mark Carney previously expressing caution about whether an agreement would be completed in time.
Separately, the source adds that other trade measures between the U.S. and Canada, including separate actions involving steel and aluminum, autos, and softwood lumber, are still in place unless the final arrangement also covers them, leaving open whether the paperwork resolves only the most urgent dispute or a wider trade package.