US and Canada reach ‘very fair’ trade agreement, Trump says

United States President Donald Trump remarked the US has reached "a very fair" trade agreement with Canada that will include no tariffs on exports by US farmers and businesses to Canada.

Key points

• Almost 72 percent of Canada's goods exports last year went to the US, and Trump's tariffs during his second term have strained the US-Canada trade relationship.
• "We have no tariffs going into Canada, " Trump remarked to journalists on Wednesday, adding that "tariffs will be non-existent for farmers".
• This week's comments come against the backdrop of waves of negotiations between Washington and Ottawa.
• Neither US nor Canadian authorities have confirmed the full details of the agreement.
• The auto sector has been a sticking point, the Reuters news agency documented, citing two unnamed industry sources.

Late Tuesday, Trump confirmed that he would put a three-day pause on 50 percent tariffs that were set to take effect on Wednesday after a "good conversation" with Canadian Prime Minister Mark Carney.

"I have paused the 50% Tariffs against Canada that were scheduled to kick in tomorrow morning for a three-day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" Trump posted on Truth Social on Tuesday.

This week's comments come against the backdrop of waves of negotiations between Washington and Ottawa. Carney remarked in an official note on Tuesday that "substantial progress has been made, although there is important work still to be done".

Neither US nor Canadian authorities have confirmed the full details of the agreement. The new tariffs would have covered regarding $20bn worth of imports. They would have applied to goods regardless of whether they qualify for preferential treatment under the US-Mexico-Canada trade agreement.

Meanwhile, the auto sector has been a sticking point, the Reuters news agency documented, citing two unnamed industry sources.

On Monday, in a session that included US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, Canada and the US discussed cutting the US's Section 232 tariffs – a tariff that is implemented after a US Commerce Department investigation finds that imports threaten US national security – on Canadian vehicles to 15 percent from 25 percent, with further reductions based on the amount of US content in each vehicle.

Almost 72 percent of Canada's goods exports last year went to the US, and Trump's tariffs during his second term have strained the US-Canada trade relationship. The extra 50 percent that was being threatened would have exacerbated that pressure.

In short, US and Canada reach 'very fair' trade agreement, Trump says is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.