Updated August 19, 2026 @ 12:29am
Prime Minister Mark Carney says there has been "substantial progress" after U.S. President Donald Trump announced a temporary suspension of new tariffs that were set to hit Canada just after midnight.
"Over the last number of weeks, Canada has engaged in intensive discussions with the United States to address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families," Carney said in a statement late Tuesday.
He said there is still important work to do and that Canada is focused on "building a stronger, more independent and more competitive economy at home."
Trump said on social media that the duties were delayed for three days "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!"
The president pointed to the Keystone XL pipeline in his initial social media post, followed by a fictional image of him slamming an illustration of the pipeline into the ground.
"The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" Trump said in the post.
Former president Joe Biden signed an executive order to revoke the permit for the Keystone XL pipeline, which would have transferred oil from Alberta to Nebraska, over long-standing climate change concerns.
Trump was set on changing that decision upon his return to office. Earlier this year, he signed an executive order for permits to revive parts of the Keystone project.
It's not clear how much of the trade talks between Canadian and American officials focused on the energy project. Carney spoke with Trump by phone Tuesday, hours before the U.S. was set to bring in the punishing tariffs.
The U.S. was set to impose 50 per cent levies on roughly $28-billion worth of Canadian goods, targeting a range of products from hockey sticks and honey to wine and cement.
Top trade officials from Ottawa had been in Washington to hammer out a deal with American counterparts to stop the tariffs from being imposed.
Canadian officials were also looking to see relief on existing tariffs that target steel, aluminum, lumber and autos.
It remained unclear late Tuesday what had been agreed to under the tentative agreement Trump announced.
The United States Trade Representative's office posted on social media late Tuesday that the deal would include "comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions that will continue to protect our market and American workers, along with our Canadian partners."
Canada-U.S. Trade Minister Dominic LeBlanc left a Monday meeting with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick saying the job was "not yet done."
Carney and Trump also spoke on the phone Monday. Carney's office and the White House gave no details about either call.
Before the Monday call, the prime minister told an unrelated news conference that Canada was negotiating from a place of strength and referred to the negotiations as "very delicate and intense."
He also said his government had a plan for any situation.
Greer had warned that the U.S. would not tolerate any retaliation.
This report by The Canadian Press was first published Aug. 18, 2026.
