US futures stall as Trump pauses Canadian tariffs amid trade deal talks
President Trump suspends 50 per cent duties on Canadian goods for three days following 11th-hour negotiations, while Target beats estimates and Meta faces trial pressure.
US stock futures hovered near the flat line on Wednesday after President Donald Trump announced a three-day pause on 50 per cent tariffs on Canadian goods, which were scheduled to take effect at midnight. The suspension, declared via Truth Social less than two hours before implementation, follows intense 11th-hour talks between Trump officials and the team of Canadian Prime Minister Mark Carney. The move signals progress toward a broader agreement regarding the US-Mexico-Canada Trade Agreement (USMCA).
The pause provides a window for negotiators to finalise documents addressing longstanding commercial disputes, including proposed components such as comprehensive market access for American goods, economic security commitments, and digital trade alignment. Trump also suggested the potential revival of the Keystone XL pipeline as part of the broader deal. The tariffs have been rescheduled to take effect at 12:01 a.m. Eastern Time on 22 August 2026, according to a White House proclamation stating that Canada has committed to removing discriminatory trade impositions.
Despite the diplomatic de-escalation, markets faced headwinds from rising bond yields, climbing oil prices, and a tech sell-off. The S&P 500 fell for a third consecutive day, and Asian markets offered little relief, with Japan’s Nikkei index dropping 3 per cent and South Korea’s KOSPI falling 5 per cent overnight. Investors are also awaiting the Federal Reserve’s meeting minutes from its July session, which are expected to provide clues into policymakers’ debates on inflation and monetary policy.
In corporate news, Target reported strong quarterly earnings, beating estimates and raising its full-year outlook. The retailer, which has been overhauling its merchandise and pricing strategies, saw sales increases across all departments, led by beauty and food, alongside higher store traffic. CEO Michael Fiddelke told Yahoo Finance that while the company is encouraged by the guest response, the goal is sustained top-line growth over several years rather than just a few strong quarters.
Conversely, Meta shares dipped ahead of the opening bell as the company faces the first day of a trial concerning its social media platforms’ impact on young users. Attorneys representing four states argued that Meta developed features to hook young users and harvested data from children under 13. The trial, heard before District Judge Yvonne Gonzalez Rogers in California, serves as a test case for a larger suit involving 24 additional states.
