President Donald Trump announced late Tuesday that he is pausing new 50 percent tariffs on a wide array of Canadian goods for three days. The tariffs had been scheduled to take effect early Wednesday morning.

Trump posted on Truth Social that the pause was based on a deal between the two countries. "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!" he wrote.

The move came hours before the midnight deadline. Canadian Prime Minister Mark Carney confirmed substantial progress in the talks but noted that important work remains.

The tariffs targeted billions of dollars in Canadian imports and stemmed from ongoing trade disputes. The three-day extension gives negotiators until Saturday to finalize documentation.

Trump has used tariff threats as leverage in trade negotiations with multiple partners. The latest pause follows weeks of discussions between U.S. and Canadian officials.

Markets reacted positively to the news of the delay. Canadian exporters gained temporary relief from the steep duties that would have raised costs on goods ranging from liquor to clothing and hockey equipment.

Both sides have signaled a willingness to continue talks aimed at a broader trade understanding. The pause avoids an immediate escalation that could have disrupted North American supply chains.