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Also unclear is what Canada would get out of the deal. Carney says the emerging agreement would provide greater certainty and preserve favorable terms for key sectors, but Ottawa has not detailed what tariff relief Washington has offered.

Carney asked provincial premiers during a briefing Wednesday to return U.S. alcohol to store shelves, Nova Scotia Premier Tim Houston said, a step aimed at addressing one of the Trump administration’s key trade complaints.

Canada currently allows a set amount of dairy imports at low tariffs. Once imports exceed that limit, much higher tariffs apply. The U.S. says Canada’s “supply management″ system makes it harder for American dairy producers to get full access to the Canadian market.

Canada’s supply management system, which implements limits on imports, has been a source of contention for the U.S. administration.

Dominic LeBlanc, the minister responsible for Canada-U.S. trade, told reporters in Washington that Canada’s “agriculture sector will be well protected and we have maintained our tough line.”

Trump raised the prospect of reviving Keystone XL In the Truth Social post announcing the three-day tariff pause, Trump declared that the long-canceled Keystone XL pipeline “may be awoken from the grave.” He posted an illustration of himself wrangling with a pipeline. He did not say whether reviving Keystone XL was part of the agreement.

Trump raised the pros pect of reviving Keystone XL In announcing the tariff pause, Trump said the long-canceled Keystone XL pipeline “may be awoken from the grave,” though he did not say it was part of the agreement. The project, designed to carry Canadian crude to U.S. refineries, was rejected by Barack Obama, revived by Trump and canceled again by Joe Biden.

Both sides wrangle over American alcohol imports Eight of Canada’s 10 provinces restrict or ban U.S. alcohol - measures imposed in retaliation for Trump’s previous tariffs on a number of Canadian goods last year and amid anger over his repeated talk of making Canada the 51st U.S. state. The Distilled Spirits Council says U.S. spirits exports to Canada have fallen more than 70%.

The White House says the emerging deal includes a Canadian commitment to address restrictions on U.S. alcohol. But Carney cannot order provinces to restore sales.

An agreement could clear the way for a broader trade deal The U.S. is renegotiating a North American trade pact - the U.S.-Mexico-Canada Agreement - that Trump strong-armed America’s neighbors into accepting in his first term. The U.S. has begun formal USMCA negotiations with Mexico but not with Canada.

If the threat of 50% tariffs is cleared, it “should help pave the way for formal U.S.-Canada negotiations,’’ said Wendy Cutler, a former U.S. trade negotiator who is now senior vice president the Asia Society Policy Institute.

Both countries had incentives to head off an escalation in trade tensions. Nearly 72% of Canada’s goods exports last year went to the United States. And the Trump administration might be wary of imposing a hefty new tariff - paid by U.S. importers who try to pass along the cost to consumers via higher prices - ahead of November’s midterm elections. American voters are already frustrated with the high cost of living. Gillies reported from Toronto.

Canadian Prime Minister Mark Carney and Trump had spoken twice by phone in the past two days about the ongoing negotiations, including a call Tuesday afternoon, Carney’s office said, underscoring the last-minute push for a deal.