Trump Delays Tariffs on Canada Amid Keystone Pipeline Deal
US President Donald Trump announced on social media that he has reached a deal with Canada to delay tariffs on Canadian goods, citing the Keystone XL pipeline as part of the agreement. The planned 50% tariffs on around $20 billion worth of Canadian products were set to take effect tomorrow morning but have now been postponed for three days.
The news comes after repeated setbacks in efforts to secure cheaper energy from the Gulf, with Trump appearing to shift focus towards Canada as a potential route to deliver lower US energy prices. He linked the tariff reprieve to the Keystone XL pipeline, which he approved during his first term but was later canceled by Democrats.
The development has reduced the risk of a bearish trend in USD/CAD and may lead to a resumption of the broader downtrend. The pair is currently trading within a narrow range between 1.3910 and 1.3851, with support zones at 1.3775 and 1.3714.