Canada and the United States have reached a last-minute agreement to delay the planned 50% tariffs on around $20 billion of Canadian goods, avoiding an immediate escalation in the two countries' already tense trade relationship.

The announcement came shortly before the tariffs were scheduled to take effect, giving Canadian exporters and businesses additional time while negotiations continue.

The threatened measures would have affected a range of Canadian products and added another layer of uncertainty for companies that depend heavily on the U.S. market.

Prime Minister Mark Carney acknowledged progress in the discussions but stressed that important work remains before a final agreement is completed.

For Canadian businesses, the temporary pause provides some immediate relief but does not remove the underlying trade uncertainty.

The negotiations remain focused on issues including market access and broader Canada-U.S. economic relations. The outcome could have significant implications for Canadian manufacturers, exporters, retailers and smaller businesses.

The latest development also keeps attention on the future of CUSMA/USMCA, North America's central trade framework.

For now, Canadian companies have avoided an immediate new tariff shock, but the short-term pause means the next stage of negotiations will remain closely watched across Canada's economy.