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President Donald Trump called off a 50% tariff on roughly $20 billion of Canadian goods late Tuesday, less than two hours before it was due to take effect, saying the two countries have a deal pending final paperwork.

Getting into it: Trump posted the pause on Truth Social. “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 USA, subject to the finalization of documents, have a DEAL!” he wrote. He also floated reviving the Keystone XL pipeline, which Biden killed in 2021 and which would move about 830,000 barrels a day out of Alberta. “The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” he wrote.

Prime Minister Mark Carney did not confirm any deal. His statement framed it as a delay that keeps negotiations alive. “Substantial progress has been made, although there is important work still to be done,” he said, adding that Canada stays focused on building a stronger and more independent economy at home. US Trade Representative Jamieson Greer said the agreement covers market access for American goods, economic security commitments, and digital trade alignment, though he did not say what any of that means in practice.

The tariffs would have hit hundreds of products, from plywood and cement to wine, dairy, furniture, clothing, and hockey sticks, and were built on Section 338 of the Tariff Act of 1930. The provision lets a president put up to 50% on imports from a country he says discriminates against American business, with no investigation required and no expiration date. Trump reached for it after the Supreme Court struck down his sweeping tariffs in February for exceeding his authority. The Canada version also carried no carve-out for goods that qualify under the USMCA, which is what has kept most cross-border trade duty-free until now.

This all comes as the US wants Canada to scrap its payback tariffs on American cars, wants the supply-managed dairy sector to loosen quotas for US cheese, and wants American booze back in provincial stores after eight of ten provinces pulled it last year.

The newest US proposal would cut the advertised rate on cars built in Canada from 25% to 15%, with an effective rate as low as 7.5% for cars carrying enough US content, which sources say still falls short of what Canada is after. Canada is pushing the other direction, asking for relief on the existing Section 232 tariffs covering steel, aluminum, autos, and lumber, and Greer has made clear the US is not walking away from tariffs altogether.