Trump pauses tariffs on Canada as Trudeau tightens border
The President of the USA, Donald Trump, and Canada's Prime Minister, Justin Trudeau, announced that the planned 25% tariffs on goods from Canada will be suspended for 30 days. Trudeau pledged to increase border security and cooperate with the USA against fentanyl smuggling, reiterating promises made back in December.
"Canada has agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl that have been pouring into our Country, killing hundreds of thousands of Americans, while destroying their families and communities all across our Country," Trump announced in a post on Truth Social.
Tariffs on Canada. Trump announces suspension of decision
Donald Trump announced that the planned tariffs would be suspended for 30 days to see if reaching a final economic agreement with Canada is possible.
He also referred to a statement released a few minutes earlier by Prime Minister Justin Trudeau, who announced a series of measures, including a CAD 1.7 billion border plan, the introduction of new helicopters and technologies for border patrol, and increased cooperation with the USA on curbing fentanyl smuggling.
Trudeau noted that 10,000 border guard employees are and will be guarding the border. He also announced the appointment of a "fentanyl czar" and the creation of a joint task force.
Here are the terms of the agreement
Trudeau added that Canada is committed to appointing a "czar" responsible for the fentanyl issue and listing Mexican drug cartels as terrorist organizations. Special forces will also be created jointly with the USA to combat organized crime, fentanyl smuggling, and money laundering.
The Canadian Prime Minister also said he signed a new regulation for intelligence services regarding organized crime and fentanyl, with approximately CAD 200 million allocated to intelligence work in this area.
Many of Trudeau's commitments on Monday, including the CAD 1.7 billion plan, were already announced on December 17, 2024, shortly after Trump first threatened to impose tariffs on the country.
The suspension of tariffs came a few hours before they were scheduled to go into effect at 10:00 PM Eastern Time and a few hours after Trump reached a similar agreement with Mexico's President Claudia Sheinbaum.
Sheinbaum announced she would send 10,000 National Guard soldiers to the border, but it is unclear whether these are additional forces to the 15,000 soldiers already engaged there. The 15,000 soldiers were first deployed there in 2019 as part of negotiations with Trump.
According to data from the American Customs and Border Protection Agency (CBP), in 2024, the American border guard intercepted 19 kilograms of fentanyl from Canada, which accounts for less than 1% of the total smuggling intercepted by American services.
Even before the preliminary agreement was announced, Trump told reporters that he was confident that, with sufficient economic pressure, he could force Canada to become the 51st state of America. However, he suggested that his advisors deemed this an unrealistic idea.
Trump also announced that he would speak with his Chinese counterpart, Xi Jinping, within 24 hours about a potential trade agreement. He threatened to increase the 10% tariffs on Chinese products if an agreement was not reached.
