President Donald Trump used Taco Tuesday to announce that he was backtracking on his plan to impose hefty new tariffs on Canada.
The president, 80, earned the nickname “TACO Trump”—standing for Trump Always Chickens Out—for flip-flopping on his regular trade-war threats.
He announced on Truth Social at 10:15 p.m Tuesday that he had paused the 50-percent tariffs on goods from Canada, due to start on Wednesday, “for a three day period.”
He said his last-minute decision was “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!”
Canadian and U.S. officials have been meeting each day for the past week in an attempt to avert the tariffs and resolve trade issues.
Trump’s trademark backdown came less than two hours before a 50-percent levy was set to be activated on on nearly $20 billion worth of Canadian imports. The feuding between the two countries has seen clashes over U.S. tariffs on automobiles and many Canadian provinces banning the sale of American liquor.
Trump did not provide further details, except to refer to the Keystone XL pipeline, which he said “may be awoken from the grave!”
The oil pipeline, which would connect Alberta to the U.S., was blocked by both the Obama and Biden administrations and has been opposed by environmentalists and indigenous groups.
Trump said the pipeline was “long ago killed by Sleepy Joe Biden,” and that reviving the project means it could carry 830,000 barrels of oil a day.
Canadian Prime Minister Mark Carney posted on social media that his country has been engaged in “intensive discussions” with America to address outstanding trade issues.
“Substantial progress has been made, although there is still important work to be done,” Carney stated, saying the postponement is due to last until midnight on Aug. 21.
“Canada remains focused on building a stronger, more independent, and more competitive economy at home,” he wrote.
“The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions that will continue to protect our market and American workers, along with our Canadian partners,” the Office of the U.S. Trade Representative said in a separate social media post.
The latest tariffs threatened by Trump were set to impact key Canadian imports including wine, dairy, cement, clothing and hockey equipment, and were in addition to existing tariffs already imposed on Canadian steel, aluminum, autos, and lumber.
In the final hours before Wednesday’s deadline, negotiators were plotting a deal that would reduce U.S. tariffs on Canadian autos from 25 percent to 15 percent, according to a Reuters report, which cited anonymous sources.
However, both were unable to agree on which vehicles would be eligible for tariff reductions, with the U.S. wanting it to only apply on cars with a high level of American-made content.
The Daily Beast has contacted the White House for comment.
