WASHINGTON — President Trump on Tuesday paused a 50 percent tariff on roughly $20 billion of Canadian imports for three days, less than two hours before the levy was to take effect, and said the United States and Canada had reached a tentative deal to end a monthslong trade standoff.

The reprieve, announced on Truth Social, averts an immediate hit to autos, wine, dairy, cement, clothing and hockey equipment that Canadian and American business groups had warned would ripple through supply chains and lift consumer prices on both sides of the border. It does not settle the underlying dispute. U.S. Trade Representative Jamieson Greer's office said documents were still being drafted, and Prime Minister Mark Carney called the agreement unfinished. Tuesday's announcement also came with a new item on the table: Trump said a final accord could revive the Keystone XL oil pipeline blocked under both the Obama and Biden administrations.

What Trump said

"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. The 12:01 a.m. Wednesday deadline was set on July 20, when the White House unveiled the new duties in a factsheet.

Greer's office said in a post on X that the pact "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". Neither the White House nor Greer's office released text.

Carney's response

"Substantial progress has been made, although there is important work still to be done," Carney, who spoke with Trump by phone twice this week, wrote in a letter posted on X. Canadian negotiators, led by chief trade envoy Janice Charette, have been camped in Washington for a week. "Our job is not yet done," U.S.-Canada Trade Minister Dominic LeBlanc said Monday outside Greer's office.

The framework under discussion in the final hours would trim U.S. tariffs on Canadian autos to 15 percent from 25 percent, according to a Reuters report cited by the BBC. The two governments have not agreed on which vehicles would qualify, with Washington pushing to limit the relief to cars with a high share of American content. Ottawa is also seeking rollbacks of existing U.S. duties on steel, aluminum and lumber.

Keystone in the mix

Trump's addition of Keystone XL reopens a project blocked by two prior administrations and long opposed by environmental and indigenous groups. The line, which would connect the Alberta oil sands to U.S. refiners, was designed to carry 830,000 barrels a day. "The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!" Trump wrote.

Canada must decide what it can trade back. The United States is pressing Ottawa to drop retaliatory tariffs on American autos, widen dairy import quotas and end the provincial bans on U.S. alcohol sales that most provinces imposed last year. Liquor sales are regulated by the provinces, not the federal government. Ontario Premier Doug Ford, whose province is the hardest hit by U.S. auto tariffs, said last week that his cooperation on alcohol depends on Washington reducing tariffs on Canada's "steel sector, our auto sector, our forestry sector, our agriculture sector, our manufacturing sector". Quebec Premier Christine Fréchette has said her province's supply-management system for dairy is non-negotiable.

Business relief, public reluctance

The U.S. Chamber of Commerce pushed for a deal on Tuesday, warning that "higher tariffs would damage both economies, drive up costs for US families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the US-Mexico-Canada Trade Agreement".

Canadian voters are less inclined toward compromise. An Abacus Data poll released this week found that 74 percent of respondents said the dispute had hit their household, 36 percent wanted Ottawa to answer with new counter-tariffs even at the cost of more domestic pain, and 18 percent favored concessions such as lifting the alcohol bans. Conservative trade critic Shuvaloy Majumdar wrote in a statement that Canadians have "grown tired of seeing our country used as a punching bag," while adding that they "share a common hope that Prime Minister Carney will deliver a genuine win at the negotiating table." Congressional Republicans and Democrats had not publicly weighed in on the framework by Tuesday evening.

The pause runs 72 hours. Trump warned earlier this month that "the time to get tougher" would follow any failure to reach a deal; Carney has said he has plans for "any situation that may arise". A signed text, or its absence, is expected before the weekend.