Trump tariffs paused for at least 30 days

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Businesses that rely on trade across the Canada-U.S. border are breathing a sigh of relief.

President Trump and his U.S. administration are delaying 25 per cent tariffs on Canada that were to take effect February 4 by at least 30 days.

“I just had a good call with President Trump,” said Prime Minister Justin Trudeau, posting on X following a 3pm eastern call with the president on Monday.

“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,” wrote Trudeau. “Nearly 10,000 frontline personnel are and will be working on protecting 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-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million. Proposed tariffs will be paused for at least 30 days while we work together.”

The Canadian government had previously proposed the creation of a joint strike force with the announcement of the $1.3 billion border plan in December.

It remains to be seen what the Trump administration is seeking from Canada in exchange for not applying the tariffs next month. President Trump mentioned the same border actions as Trudeau in a post on his Truth Social platform, and concluded his post with the following statement:

“I am very pleased with this initial outcome, and the 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!”

Earlier in the day, Trump also decided to delay 25 per cent tariffs on Mexico by 30 days after Mexican president Claudia Sheinbaum pledged to put 10 thousand troops on the Mexico-U.S. border.

More to come.

Categories: News / Trade

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