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Montevideo, February 4th 2025 - 10:49 UTC

 

 

Tariffs on Canada also postponed after Trump-Trudeau talks

Tuesday, February 4th 2025 - 08:46 UTC
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Trudeau had announced Canada's own 25% tariff on US goods  in retaliation Trudeau had announced Canada's own 25% tariff on US goods in retaliation

After agreeing with Mexico's Claudia Sheinbaum on a one-month pause for the imposition of 25% tariffs, US President Donald Trump reached an understanding Monday with Canadian Prime Minister Justin Trudeau, provided his northern neighbors acquiesced to a series of demands regarding border security, including higher spending on organized crime and drug trafficking fight, in addition to appointing an official specifically in charge of fentanyl, drug cartels, and terrorists. Under the new deal, Canada also agreed to launch a joint strike force to combat organized crime.

“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,” Trudeau explained on social media.

According to Canada's Chamber of Commerce President and CEO Candace Laing, the standby represented “a bit more breathing room“ for local businesses, but ”definitely not breathing easy,”

“Tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final Economic deal with Canada can be structured. FAIRNESS FOR ALL!,” wrote on Truth Social the Republican leader, who has spoken about a fair “economic deal” by early March.

Monday's agreement was achieved after two telephone conversations between Trump and Trudeau. Canada also paused its planned first round of retaliatory tariffs. Both leaders also reviewed their December 2024 commitment regarding border security investments, reinforcing surveillance with new helicopters, technology, and staff. “Nearly 10,000 frontline personnel are and will be working on protecting the border,” Trudeau said on X.

Trump signed an executive order Saturday imposing a 25% tariff on nearly all goods coming into the US from Canada and Mexico, except for energy items from the northern neighbor, which were to be taxed only 10%. In response, Trudeau announced over the weekend that Canada would issue its own 25% tariff on US goods.

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