US President Donald Trump has paused new tariffs on Canadian goods for three days. The 50% tariffs were going to start the next morning. They would cover almost $20 billion of goods from Canada. Trump said the United States and Canada are close to a trade deal. Canadian Prime Minister Mark Carney said they have made good progress, but they still have work to do.

The new tariffs would affect Canadian wine, milk products, clothes, cement, and hockey equipment. The US already has tariffs on Canadian steel, aluminium, cars, and wood. Canada wants the US to lower these tariffs. The US wants Canada to lower its tariffs on American cars. It also wants Canada to buy more US cheese and start selling American alcohol again.

The two countries may lower the US tariff on Canadian cars from 25% to 15%. However, they still need to agree on which cars will get the lower tariff. Trump also said the deal may bring back the Keystone XL oil pipeline from Alberta, Canada, to the US. If the two countries do not finish the deal in three days, the 50% tariffs may begin.