Washington: US President Donald Trump announced late on Tuesday he was putting a three-day pause on new 50 percent tariffs set to go into effect on Canadian goods at midnight, saying the two countries had reached a deal.

According to Emirates News Agency, an hour later, Canadian Prime Minister Mark Carney issued a statement acknowledging that "substantial progress has been made, although there is important work still to be done." This development marks a significant step in easing tensions between the two neighboring countries regarding trade relations.

Trump stated in his post on Truth Social that the pause on tariffs was "based on the fact that Canada and the U.S.A., subject to the finalisation of documents, have a DEAL." This announcement comes as a relief to many businesses and consumers who were concerned about the potential economic impact of the proposed tariffs.

The US Trade Representative Jamieson Greer's office provided further details on the agreement, explaining that the deal would include "comprehensive market access for all American goods, economic security commitments, digital trade alignment," and other provisions. The specifics of these provisions are yet to be disclosed, but they are expected to align closely with the interests of both nations.

The temporary halt in tariffs is seen as a positive step towards finalizing a comprehensive trade deal, and both countries are expected to work diligently over the coming days to finalize the necessary documentation. As negotiations continue, stakeholders from various sectors will be keenly observing the developments to understand the potential impacts on their operations and strategies.