Trump delays Canada tariffs after announcing tentative trade agreement

U.S. President Donald Trump paused new tariffs on Canadian goods on August 19, 2026, after the two countries reached a tentative trade deal. The tariffs would have been 50 percent and covered around $20 billion of Canadian imports. Trump made the announcement less than two hours before they were due to start. He described the deal as "very good" for both countries. The agreement covers American access to Canadian markets, digital trade, and a dispute about provincial bans on American liquor. Auto tariffs were also part of the talks. The deal is not yet official because both sides still need to sign the final documents. Canadian Prime Minister Mark Carney said the two countries had made substantial progress. Senior trade officials from both sides met in Washington the following morning.