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Aug 21, 2026

Breaking: Trump Walks Away from Talks After Declaring “No Deal!”

President Donald Trump delayed a new round of 50 percent tariffs on roughly $20 billion in Canadian imports for three days as the United States and Canada moved closer to a trade agreement, while also raising the possibility that the long-canceled Keystone XL pipeline could return to the table.

The tariffs had been scheduled to take effect at 12:01 a.m. Eastern time on Aug. 19 under Section 338 of the Tariff Act of 1930, a rarely used provision that allows the president to impose duties of up to 50 percent in response to what the administration determines is discriminatory treatment of U.S. commerce.

Trump announced the pause late Tuesday, saying the two countries had reached the outlines of an agreement but still needed to finalize the documents.

“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!” Trump wrote on Truth Social.

He then added a line that immediately drew attention to one of the most politically contentious energy projects in North America.

“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” Trump wrote.


Canadian Prime Minister Mark Carney described the talks as having made substantial progress, while Canadian officials cautioned that important details still had to be resolved before a final agreement could be announced.

The threatened tariffs were tied to a series of U.S. complaints involving Canadian treatment of American alcoholic beverages, dairy products and motor vehicles.

In July, the White House issued proclamations under Section 338 accusing Canada of placing U.S. commerce at a disadvantage in those sectors and ordering additional 50 percent duties on specified Canadian products.

The dispute over alcohol has been especially visible because several Canadian provinces removed U.S.-made wine, beer and spirits from government-controlled stores in response to earlier American tariffs.

Canada’s dairy policies and restrictions affecting U.S. auto exports have also been central points of friction in the negotiations.

U.S. Trade Representative Jamieson Greer has said the emerging agreement is intended to expand market access for American goods and address economic security and digital trade issues, while Canadian negotiators have sought relief from existing U.S. tariffs on Canadian steel, aluminum and automobiles.

The three-day delay did not amount to a completed trade agreement.

By Thursday, Canada-U.S. Trade Minister Dominic LeBlanc said the two sides were “very close” to finalizing a deal after another round of talks in Washington.

That distinction matters because the 50 percent duties remain available if negotiations fail, giving the Trump administration continued leverage while the two governments work through unresolved terms.

Trump’s reference to Keystone XL added another major issue to the talks, although neither government had announced a formal agreement to revive the project.

Keystone XL was designed to carry Canadian crude oil from Alberta toward the U.S. pipeline network and refineries on the Gulf Coast.

President Joe Biden revoked a key presidential permit for the project on his first day in office in January 2021, and developer TC Energy later terminated the project.

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