August 19, 2026
Just before midnight, Donald Trump pressed pause on the 50% tariff hit that was supposed to land on Canadian goods this morning. It's not over, and it's not free — here's what actually changed and what still costs you money.
1. Trump paused the 50% tariffs for three days, citing a "deal"
Less than two hours before the Aug. 19 deadline, President Trump posted on Truth Social that he was pausing the new 50% tariffs on Canadian dairy, alcohol, and a long list of other goods for three days, saying Canada and the U.S. have a deal "subject to the finalization of documents." Prime Minister Mark Carney was more measured, calling it "substantial progress" while noting "there is important work still to be done." A White House statement said Canada has "expressed a commitment" to address U.S. concerns on alcohol, autos, and dairy — but no signed text exists yet, and the pause is only 72 hours.
What it means for you: Nothing changes at the checkout today — the 50% duty on dairy, alcohol, and dozens of other product categories stays off for now. But "three days" is not "solved." If you were holding off on a big cross-border order or import, this isn't the all-clear to stop watching.
2. The TSX dropped almost 300 points into the deadline
The S&P/TSX Composite fell 299.99 points Tuesday to close at 36,367.93, a 0.8% pullback, as investors priced in deadline uncertainty. Canada's big banks led the slide — RBC, TD, BMO, CIBC, and Scotiabank all closed lower — alongside weakness in mining and materials. It's worth noting the index is still hovering near record territory; this was a jittery pause, not a rout.
What it means for you: If you hold bank stocks or a broad Canadian index fund in your TFSA or RRSP, expect more of this kind of headline-driven swing over the next few days. Resist the urge to check your portfolio hourly — this is exactly the kind of noise a long-term investor is supposed to sit through.
3. The loonie slipped to 72 cents US
The Canadian dollar eased to 72.00 cents US on Tuesday, down slightly from 72.12 cents US on Monday, as trade uncertainty weighed on the currency into the deadline. That's a pullback from the multi-week highs the loonie touched earlier in August.
What it means for you: A softer loonie makes U.S. cross-border shopping and travel a bit more expensive, and nudges up the price of anything priced in U.S. dollars — including plenty of imported groceries and electronics. If you're planning a U.S. trip, keep an eye on this over the next few "deal or no deal" days.
4. Gold pulled back from its record run
Gold gave back some ground Tuesday, with the December contract down US$53.10 to US$4,420.60 an ounce, easing off the fresh records it set earlier this month. Gold is still up sharply on the year as investors have leaned on it as a hedge against tariff and inflation uncertainty.
What it means for you: If you added gold or a gold ETF to your portfolio this year as an inflation hedge, a pullback like this is normal after a record run — not a signal to bail. It's a reminder that even "safe haven" assets move fast on headline news.
5. Big-box earnings this week are the next inflation clue
Home Depot kicked off this week's retail earnings on a strong note Tuesday, beating both revenue and profit estimates. Target and Lowe's report today, with Walmart closing out the week Thursday. Together, they're the clearest read Wall Street gets on whether U.S. and North American shoppers are still spending or finally pulling back under sustained inflation — a signal that flows straight into how the Bank of Canada thinks about its Sept. 2 rate decision.
What it means for you: Weak consumer spending signals from these earnings could support a BoC rate cut on Sept. 2; strong numbers make a hold more likely. If you're timing a mortgage renewal or a big purchase, this week's earnings are worth a glance before you lock anything in.
This post is for general information only and isn't financial advice. Talk to a licensed advisor before making investment or borrowing decisions.
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