Canadian PM Carney Says 'Substantial Progress' Made as US Tariff Deadline Delayed by Three Days

Canada and the United States have agreed to delay the implementation of a proposed 50 per cent tariff on a range of Canadian goods until August 21, giving negotiators additional time to resolve outstanding trade issues. Canadian Prime Minister Mark Carney said substantial progress had been achieved during recent discussions with Washington, although several important matters still need to be settled.

In a letter shared on X, Carney said Canada had spent recent weeks in intensive negotiations with the United States, seeking greater certainty and tangible benefits for Canadian businesses, workers, farmers and families. He said the discussions were continuing while Canada remained committed to strengthening its domestic economy and making it more independent and competitive.

“Substantial progress has been made, although there is important work still to be done,” Carney said, adding that the United States had agreed to postpone the 50 per cent tariff under Section 338 of the US Tariff Act of 1930 until the end of August 21. The delay came just hours before the tariffs were scheduled to take effect at 12:01 a.m. Eastern Time on Wednesday. According to Canadas CBC, the proposed duties could have affected hundreds of Canadian products worth more than $28 billion, including plywood, cement, wine and hockey equipment.

US President Donald Trump had earlier announced a three-day pause in the tariffs, saying Washington and Ottawa had reached an agreement that was still subject to the completion of formal documents. Trump said the decision to temporarily suspend the tariffs was based on a deal reached between the two countries, pending final documentation. The three-day extension is expected to give officials on both sides more time to negotiate and finalise the remaining details. Discussions have intensified in recent days, with Canadian officials meeting members of the Trump administrations negotiating team in Washington last week.

Disclaimer: This image is taken from Reuters.