Kathmandu— The United States and Canada have reached a trade deal to avoid steep tariffs on billions of dollars worth of goods, according to an announcement by US President Donald Trump. The agreement came shortly before a midnight deadline for imposing a 50 percent duty on a range of Canadian exports, including electronics, industrial machinery, furniture, and dairy products. Trump announced the pause in tariffs via his Truth Social account, citing a deal “subject to the finalization of documents.”

Tariff Threat Averted

President Trump had previously threatened to impose significant tariffs on Canadian goods if a trade agreement wasn't reached. The planned 50 percent duty was set to take effect shortly before his announcement, potentially disrupting trade between the two countries and impacting various industries.

Keystone XL Pipeline Mentioned

In his post announcing the deal, Trump also referenced the Keystone XL Pipeline, which was cancelled by President Joe Biden. He suggested that the pipeline “may be awoken from the grave!” as a result of the agreement, though the connection between the trade deal and the pipeline remains unclear.

Further details regarding the specifics of the trade deal are expected to be released pending finalization of documentation.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.