US and Canada reach ‘very fair’ trade agreement, Trump says

What the report says

US President Donald Trump said the United States has reached what he described as a “very fair” trade agreement with Canada, with no tariffs on exports from US farmers and businesses entering the Canadian market. His comments followed a three-day pause on threatened 50 percent tariffs that were due to begin Wednesday, after what Trump called a good conversation with Canadian Prime Minister Mark Carney.

According to the reporting, Carney said in a statement that the two sides had made substantial progress, though more work remained before the deal is fully finalized. Neither US nor Canadian officials publicly confirmed the complete terms of the agreement. The discussions came during a period of tense negotiations between Washington and Ottawa over tariffs and access to each other’s markets.

The article notes that the threatened tariffs would have affected about $20bn in imports and would have applied even to goods covered by the US-Mexico-Canada trade agreement. Reuters, citing unnamed industry sources, reported that the auto sector was a major sticking point, with talks including possible reductions in US tariffs on Canadian vehicles. In broader context, Canada sends a large share of its exports to the US, so changes in tariff policy can have significant economic effects for both countries.