Trade between the U.S. and Canada just got more complicated.

In October, the Trump administration officially ended trade talks with Canada after the Ontario provincial government aired an advertisement with audio of former president Ronald Regan speaking negatively about tariffs. The Ontario government canceled the ad shortly after.

Now a month later, the U.S. president has yet to impose the additional 10% tariff he threatened when he left the negotiating table. According to a report from POLITICO, Trump has not sent official documentation ordering an increase in the levies – and the U.S. government hasn’t offered regulatory guidance to importers, either.

While the Trump administration neither confirmed nor denied whether the tariffs would be paused, another U.S. official told POLITICO the administration plans to hold off on these additional tariffs, which would bring levies on Canadian goods to 45%. The U.S. previously imposed a 35% tariff on Canadian goods, and a 10% tariff on foreign softwood lumber and timber that went into effect October 14.

While the U.S. produces much of its wood and lumber domestically, approximately a quarter of its supply is sourced internationally. According to the Observatory of Economic Complexity, Canadian wood accounted for $11.1 billion of imports into the U.S. last year, wood supply directly impacts print and promo, as corrugate boxes used for shipping and branded packaging rely directly on the availability of softwood lumber. It would also impact promo products made of timber, such as coasters.

The majority of these tariffs are protected under the United States-Mexico-Canada Agreement, but the trade deal has been amended multiple times since its inception. The current agreement is slated to undergo a joint review in July 2026, meaning further changes to Canadian tariff protections could happen between now and then.

President Trump and Canadian Prime Minister Mark Carney seem to be in good standing – at least for now. In late October, the two crossed paths in Gyeongju, South Korea, for the Asia-Pacific Economic Cooperation summit.

“I have a very good relationship [with Carney]. I like him a lot, but what they did was wrong. He was very nice. He apologized for what they did with the commercial,” Trump told reporters on Air Force One.

Carney has since confirmed the apology, adding that he’d originally recommended the ad not be aired in the first place. Now, he says he’ll speak to Trump again “when it matters,” BBC reports.

It’s unclear whether Trump is holding off on the 10% tariffs because he plans to renegotiate a trade deal with Carney down the line, or if he is pulling back due to concerns about what the looming Supreme Court ruling would mean for the administration’s trade policy. Trump’s team is strategizing workarounds to prepare for a potential scenario where the Supreme Court deems his tariffs imposed under the International Emergency Economic Powers Act (IEEPA) unconstitutional. The court is expected to reach a decision by June 2026.

Trump has already eased up on some of his previously imposed tariffs to soften the blow on consumers’ wallets. Earlier this month, he lifted some tariffs on beef, coffee and tropical fruit. The administration also floated the idea of issuing a $2,000 tariff stimulus check to eligible Americans, though he has not released additional details.