Last Updated:
Trudeau agreed to deploy 10,000 troops to the border and made new commitments to coordinate with the US to combat fentanyl and money laundering after Trump’s tariff threats.
Donald Trump and Justin Trudeau had been at loggerheads for some time, with both sides imposing tariffs. (Reuters/File Image)
Canadian Prime Minister Justin Trudeau on Monday said that US President Donald Trump has agreed to a 30-day pause on tariff threats against Canada after the former’s administration took steps to address Trump’s concerns about border security and Fentanyl trafficking during talks between the two.
This follows a similar pause on US tariffs on Mexican goods, according to Trump and Mexican President Claudia Sheinbaum after holding talks. Mexico also agreed to reinforce security along its border with the United States to fight drug trafficking, Sheinbaum announced.
On Saturday, Trump had imposed 25% tariffs on all imports from Canada and Mexico, setting a trade war in North America that could potentially sabotage economic growth. Canada retaliated with 25% tariffs on $155 billion in US imports the next day.
Trudeau To Implement Border Plan, Appoint ‘Fentanyl Czar’
In a statement, Trudeau said Canada is implementing a $1.3 billion border plan that entails reinforcing the border with new choppers, technology and personnel and enhanced cooperation with the US to stop the flow of the fatal drug Fentanyl and address Trump’s concerns on illegal immigration.
He said 10,000 troops would be deployed at the border. “In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- US Joint Strike Force to combat organised crime, fentanyl and money laundering. I have also signed a new intelligence directive on organised crime and fentanyl and we will be backing it with $200 million.,” he said on X.
I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…— Justin Trudeau (@JustinTrudeau) February 3, 2025
The pause followed a similar move with Mexico that allowed for a period of negotiations over drug smuggling and illegal immigration. However, the 10% tariff that Trump ordered on China is still set to go into effect as scheduled on Tuesday, though Trump planned to talk with Chinese President Xi Jinping in the next few days.
‘Fairness For All’, Says Trump
Taking to his Truth Social platform, Trump said his call with Trudeau on Monday went “very well” and he hailed the initial agreement with Trudeau. Trump said US tariffs would be paused for 30 days to see whether a final economic deal with Canada could be structured. “FAIRNESS FOR ALL!” he said.
“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,” he said.
Earlier, Trump had complained that Canada does not allow US banks to open or do business there and reiterated that hundreds of thousands of people have died in the US from drugs pouring through the borders of Mexico and Canada, shortly after speaking to Trudeau before speaking to the Canadian PM again.
US-Canada Trade
Canada is one of the largest trading partners of the United States. Nearly $3.6 billion Canadian (US$2.5 billion) worth of goods and services cross the border each day. Canada is the top export destination for 36 US states and 77% of Canada’s exports go to the United States.
The US is the only country with which Canada enjoyed a widening trade surplus in November 2024, as per a Canadian government report. “Exports to the United States rose 6.8% in November, while imports increased 4.1%. As a result, Canada’s trade surplus with the United States widened from $6.6 billion in October to $8.2 billion in November,” the report said.
Trump’s tariffs seem to have dealt a heavy blow to the longstanding ties between the US and Canada, particularly after his repeated threats to make Canada the 51st US State. Canadian hockey fans were recently seen booing the American national anthem at recent National Hockey League games.
While the trade war feared by investors, companies and political leaders now seems less likely to erupt, that doesn’t mean the drama over Trump’s tariff threats has ended. Canada and Mexico bought some additional time, but Trump could easily renew his tariffs and already plans to announce taxes on imports from the European Union.
(with agency inputs)
