President Donald Trump has delayed planned 50% tariffs on nearly $20 billion worth of Canadian imports for three days, after U.S. and Canadian negotiators reached what both sides described as a breakthrough.

The 50% U.S. tariffs on Canadian goods had been scheduled to take effect at 12:01 a.m. ET on Wednesday. Announcing the pause late Tuesday, Trump said the duties would be held back while negotiators finalize documents tied to a tentative agreement between the two countries, leaving a narrow three-day window to convert the tentative deal into final text.

"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!" Trump wrote on social media.

The tariff threat had targeted a broad range of Canadian products, including wine, dairy products, cement, clothing and hockey equipment. The proposed duties would have been added to existing U.S. tariffs on Canadian steel, aluminum, automobiles and lumber, meaning many Canadian goods would have carried multiple layers of U.S. tariffs at once.

Canadian Prime Minister Mark Carney said "substantial progress has been made, although there is important work still to be done," according to Time Magazine.

Trade talks continued Wednesday in Washington, where Canada-U.S. Trade Minister Dominic LeBlanc was scheduled to meet with U.S. Trade Representative Jamieson Greer in an effort to finalize an agreement and resolve outstanding trade disputes, CBC reported.

The U.S. and Canada have been locked in negotiations for weeks over a series of trade disagreements, including U.S. tariffs on Canadian autos and retaliatory measures imposed by Canada. Key issues on the table include Canadian restrictions on U.S. liquor sales, dairy market access and retaliatory tariffs on American automobiles. Several of these are long-standing friction points: dairy access disputes between the two countries have already gone to formal dispute panels under the United States-Mexico-Canada Agreement, the trilateral pact that took effect in 2020 and is itself scheduled for a joint review in 2026, while alcohol retailing in Canada is largely controlled by provincial liquor authorities.

One unresolved issue reportedly involves automobile tariffs. Negotiators had discussed reducing U.S. tariffs on Canadian autos from 25% to 15%, but disagreements remained over which vehicles would qualify for the lower rate and how much U.S.-made content they would be required to contain, according to Reuters.

Canada is one of the United States' largest trading partners, with two-way trade in goods and services running at roughly $1 trillion a year by U.S. government estimates, and a 50% tariff escalation could have raised costs and disrupted freight flows across North America's integrated manufacturing, automotive and supply chain networks — supply chains in which parts and unfinished vehicles routinely cross the border several times before a finished car is assembled.