President Donald Trump reversed his threat to impose high tariffs on Canadian products just before a midnight deadline. An agreement was reached between the two nations, although details are scarce. Trump announced the deal, stating that concessions would be made and certain actions taken.

The last-minute turnaround highlights the use of tariffs as a negotiating tool by the Trump administration. The tariff dispute is not solely about taxing $20 billion in Canadian imports, but rather about Trump's ability to leverage power in negotiations.

Further information on the agreement and its implications can be found through analysis by Elisabeth Buchwald and Allison Morrow.