President Trump announced that a new trade deal will eliminate tariffs on U.S. farmers and businesses exporting to Canada.
Published August 19, 2026
President Donald Trump said the United States has agreed to a “very fair” trade deal with Canada that does not impose tariffs on exports to Canada by American farmers and businesses.
“There will be no tariffs on Canada,” President Trump told reporters Wednesday, adding, “There will be no tariffs on farmers.”
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Late Tuesday, President Trump announced a three-day suspension of 50% tariffs that were scheduled to go into effect Wednesday following a “good conversation” with Canadian Prime Minister Mark Carney.
“Based on the fact that Canada and the United States have a DEAL, subject to finalization of the text, I have suspended the 50% tariffs on Canada for three days that were scheduled to begin tomorrow morning!” President Trump posted on Truth Social on Tuesday.
This week’s comments come as negotiations between Washington and Ottawa intensify. “While significant work remains, significant progress has been made,” Carney said in a statement Tuesday.
Neither U.S. nor Canadian officials have confirmed the full details of the agreement. The new tariffs will cover about $20 billion worth of imported goods. It would have applied to goods regardless of whether they qualify for preferential treatment under the U.S.-Mexico-Canada Trade Agreement.
The auto sector is at an impasse, Reuters reported, citing two anonymous industry sources.
On Monday, in a meeting attended by U.S. Trade Representative Jamison Greer and Secretary of Commerce Howard Lutnick, Canada and the United States discussed lowering U.S. Section 232 tariffs on Canadian cars from 25% to 15%, a tariff imposed after a U.S. Department of Commerce investigation finds the imports pose a threat to U.S. national security, with further reductions based on the amount of U.S. content in each vehicle.
Nearly 72 per cent of Canada’s exports of goods last year went to the United States, and tariffs in President Trump’s second term have strained trade relations between the United States and Canada. The pressure would have been even worse if another 50 percent were threatened.
