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Welcome to The Logoff: President Donald Trump’s planned Canada tariffs are off — for now.
What happened? Trump had previously threatened 50-percent tariffs on about $20 billion worth of Canadian goods, but delayed them late on Tuesday, hours before they were set to take effect.
In a social media post, he wrote that the tariffs were on hold 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!”
Is there actually a deal? We’ll find out in the next three days. Trump’s claims should always be taken with a grain of salt, and Canadian Prime Minister Mark Carney said only that “substantial progress” had been made toward a deal, with “important work still to be done.”
On Wednesday, the Wall Street Journal reported that the US could reduce previous tariffs on Canadian goods —which applied to cars, steel, and aluminum — as part of a potential trade deal. Trump has also suggested that a deal could resurrect the Keystone XL oil pipeline.
Can Trump still impose new tariffs? He can. Earlier this year, the Supreme Court struck down Trump’s use of a specific law, the International Emergency Economic Powers Act, to impose tariffs. In doing so, the Court ended many of his most sweeping tariffs and took away his favorite way to impose them.
He has plenty of other tools to keep at it, though, albeit on a more limited basis. Trump was threatening to use a never-tested section of the 1930 Smoot-Hawley Tariff Act to impose his most recent Canada tariffs. (Other existing Canadian tariffs fall under yet another law.)
What’s the big picture? This trade fight could preview an even bigger one to come, as the US, Mexico, and Canada attempt to renegotiate the US-Mexico-Canada Agreement that Trump struck in his first term. Trump declined to renew the deal last month, kicking off new negotiations.
And with that, it’s time to log off…
We got some incredibly good news about cancer treatment on Wednesday from the pharma companies Moderna and Merck, which announced a successful trial of an mRNA vaccine for melanoma, a particularly dangerous type of skin cancer.
The idea of using vaccines — and specifically mRNA, which helped produce Covid vaccines in record time — to treat cancer isn’t new, but the Moderna and Merck trial is a big step on the path to getting a cancer vaccine approved by the FDA.
As always, thanks for reading, and we’ll see you back here tomorrow!
