US President Donald Trump has paused 50% import tariffs on Canada for three days, announcing the move on social media, as reported by infohub.kz.

The agreement was reached late Tuesday, just hours before the tariffs, which would have affected $20 billion worth of goods, were set to take effect. Trump said the parties had reached a deal "subject to the finalization of documents." Canadian Prime Minister Mark Carney said "substantial progress" had been made towards a trade deal, but more work was needed.

The tariffs would have affected Canadian exports including wine and hockey sticks. In his post, Trump also said the Keystone XL pipeline project "may be awoken from the grave," but did not clarify whether it was linked to the tariff deal.

Keystone XL, proposed in 2008 to transport oil from Canada's western tar sands to US refineries, was halted in 2021 by TC Energy after Joe Biden revoked a key permit for the 1,930-kilometer (1,200-mile) project. It became a contentious issue in US-Canada relations, facing opposition from landowners, Native American tribes, and environmentalists.

Other North American oil pipelines, such as Dakota Access and Enbridge Line 3, have also faced ongoing opposition from environmental groups concerned about spills.

Tuesday's last-minute deal comes after a year of strained relations between the two longtime allies, marked by tit-for-tat tariffs and Trump's remarks about making Canada a US state.

In February 2025, the White House imposed 25% tariffs on Canada, citing insufficient progress in curbing illegal immigration and drug trafficking. Canada retaliated with reciprocal tariffs, calling the US actions "unwarranted and unreasonable." Canadian officials countered that less than 1% of fentanyl and illegal crossings come from Canada.

In July 2026, the White House announced 50% tariffs, accusing Canada of discriminating against US-made cars, alcohol, and dairy products. Carney told reporters on Monday that top officials from both countries had been engaged in "intense and delicate" talks.

Historically, Canada and the US have been strong trading partners. In 2024, bilateral trade was estimated at roughly $909 billion, according to the US Trade Representative's office. The latest tariff threat has raised fears of financial hardship for Canadian businesses, as reported by CBC. Some goods previously exempt under the USMCA trade deal were not protected this time.