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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.

It has also asked for the ban on US alcohol sales, imposed last year by most Canadian provinces in retaliation to Trump's tariffs, be removed.

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.”

Canadian Prime Minister Mark Carney said in a statement "substantial progress" had been made but that important work remained, confirming Canada had agreed to the three-day delay while negotiations continued.

Published Canada and the US are finalising a highly anticipated trade deal, with President Donald Trump and Prime Minister Mark Carney touting it as a success.

Trump has made tariffs the centerpiece of his second-term economic agenda. Last year, he imposed double-digit import taxes on almost every country, justifying them by declaring the longstanding U.S. trade deficit a national emergency. The Supreme Court in February ruled that he’d overstepped his authority, striking down those tariffs and setting the stage for the federal government to pay refunds to importers.

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.

So Trump has looked for other legal authority to impose tariffs. To hit Canada, he reached back to the Great Depression, invoking Section 338 of the Tariff Act of 1930 to threaten 50% tariffs on products that account for about 5% of Canadian exports to the United States.

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.)

The U.S. is renegotiating a North American trade pact — the US-Mexico-Canada Agreement — that Trump strong-armed America’s neighbors into accepting in his first term. The threat of Section 338 tariffs gives the United States leverage to seek fresh concessions from Ottawa. Gillies reported from Toronto.

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.