Trump Pauses Tariffs on Canada After Border Agreement Was Reached

Published on 3 February 2025 at 17:39

By Joe





2-Minute read




In a significant development, former President Donald Trump agreed on Monday to temporarily halt the implementation of planned tariffs on Canadian imports for at least 30 days. This decision came after a productive conversation between Trump and Canadian Prime Minister Justin Trudeau, who announced the pause in a tweet. The move follows a similar agreement with Mexico, where Trump also suspended tariffs for one month after both nations committed to taking stronger measures to combat the trafficking of fentanyl, a deadly opioid, into the United States.

 

Trump had initially announced on Saturday that he would impose a 25% tariff on goods from Mexico and Canada, along with a 10% tariff on Chinese imports. Additionally, he planned to levy a 10% tariff on Canadian energy resources. In response, Trudeau warned that Canada would retaliate with a 25% tariff on $155 billion worth of U.S. goods. However, the tone shifted on Monday as Trudeau revealed the temporary suspension of tariffs, citing Canada’s commitment to addressing the fentanyl crisis.

 

In his tweet, Trudeau highlighted Canada’s efforts to strengthen border security, including the appointment of a “Fentanyl Czar” and the implementation of a $1.3 billion border protection plan. This initiative involves deploying new helicopters, advanced technology, and additional personnel to enhance coordination with U.S. authorities and curb the flow of fentanyl. Trudeau noted that nearly 10,000 frontline workers are already engaged in safeguarding the border.

 

“Proposed tariffs will be paused for at least 30 days while we work together,” Trudeau wrote, signaling a willingness to collaborate on resolving the issue. Interestingly, Canada had outlined its border security plan on an official government webpage as early as December 18, well before Trump’s tariff announcement.

 

Trump, in a post on Truth Social, expressed satisfaction with the agreement, emphasizing the importance of securing the northern border and combating the fentanyl epidemic, which has claimed hundreds of thousands of American lives and devastated communities across the country. “I am very pleased with this initial outcome,” Trump wrote, adding that the tariffs would be paused for 30 days to allow for further negotiations on a potential economic deal with Canada. He concluded his message with the phrase, “FAIRNESS FOR ALL!”

Earlier on Monday, Trump also suspended tariffs on Mexican imports after Mexican President Claudia Sheinbaum pledged to deploy 10,000 soldiers to the country’s northern border to intercept fentanyl shipments. The majority of fentanyl seized at U.S. borders originates from Mexico, with over 21,100 pounds confiscated in 2024 alone. In contrast, only about 43 pounds were seized at the Canadian border during the same period.

 

The temporary tariff pauses mark a step toward de-escalating trade tensions while addressing the urgent issue of fentanyl trafficking. Both Canada and Mexico have taken concrete steps to demonstrate their commitment to combating the opioid crisis, paving the way for potential long-term agreements. As negotiations continue, the focus remains on balancing economic interests with the critical need to protect public health and safety.

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