Signal Trump pauses 50% tariffs on Canadian goods for 3 days

Summary

President Trump announced on the night of August 18, 2026 that he was pausing the newly enacted 50% Section 338 tariffs on Canadian goods for three days, just hours before they were due to take effect at midnight. The tariffs, which would have been the first-ever presidential use of Section 338 of the Tariff Act of 1930, were postponed from August 19 to August 22, contingent on finalizing a trade deal rather than being cancelled outright. The measures target autos, alcohol, and dairy along with a broad annex of ancillary goods such as cement, furniture, and hockey sticks, covering an estimated $20 billion, or about 5.2%, of Canadian exports to the US. Canadian Prime Minister Mark Carney confirmed substantial progress had been made while noting important work remained. Trade Minister Dominic LeBlanc said Canada's dairy supply-management system would remain intact, and Trump referenced a possible revival of the Keystone XL pipeline as part of the negotiations. Some provinces, including Quebec, expressed concern over undisclosed deal terms.