The US announced a three-day pause on 50% tariffs on certain Canadian goods that were set to take effect Wednesday as the two countries continue negotiations on a trade deal.
President Donald Trump announced the pause late Tuesday, delaying the implementation of the tariffs while negotiations continue.
"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!" wrote Trump in a Truth Social post on Tuesday.
"Substantial progress has been made, although there is important work still to be done," said Canadian Prime Minister Mark Carney in a statement also on Tuesday.
"Over the last number of weeks, Canada has engaged in intensive discussions with the United States to address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers, and families," added Carney.
The new US tariffs announced in July would have hit $20 billion worth of Canadian goods, including some that had been exempt under the US-Mexico-Canada Agreement (USMCA).
The Canadian dollar made a small rally of 0.13% against the US dollar early Wednesday after the US postponed new tariffs against Canada, according to Deutsche Bank Research in a note Wednesday.