The tariffs were scheduled to take effect at midnight on August 19 and would have affected about $20 billion worth of Canadian imports.
Trump announced the three-day pause on August 18, saying the United States and Canada had reached a deal subject to the finalization of documents.
However, Carney gave a more cautious assessment, saying that “substantial progress” had been made but that important work remained.
The Canadian government did not publicly confirm the details of an agreement announced by Trump.
The two leaders spoke on Tuesday afternoon, marking their second conversation of the week as negotiators worked to resolve the remaining trade disagreements.
According to the U.S. Trade Representative’s office, the proposed agreement would include broader market access for American goods, economic security commitments and alignment on digital trade.
Trump also said Canada had committed to addressing U.S. concerns over Canadian duties on dairy products, alcoholic beverages and motor vehicles.
The trade dispute has created significant uncertainty for Canadian businesses.
The proposed tariffs would have affected products including wine, dairy goods and other imports, with industry groups warning that higher costs could lead to job losses and business closures.
A major disagreement has involved the automotive sector, particularly how North American content in vehicles assembled in Canada should be treated when calculating tariff deductions.
Trump also suggested that the Keystone XL oil pipeline, which was cancelled by former U.S. President Joe Biden in 2021, could potentially be revived, although he provided no details linking the project to the emerging trade agreement.
The three-day pause gives negotiators additional time to finalize the outstanding issues.
For Canada, the immediate threat of the new tariffs has been delayed, but the uncertainty remains until the two governments complete and formally confirm their agreement.
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