Trudeau and Trump Agree to 30-Day Tariff Suspension “`

Following a similar agreement with Mexico, Canada has secured a temporary reprieve from US tariffs.

After speaking with US President Donald Trump, Canadian Prime Minister Justin Trudeau announced a 30-day postponement of the 25% tariffs on Canadian goods. This follows Trump’s Saturday announcement of tariffs on imports from Mexico, Canada, and China, citing concerns about illegal immigration and drug trafficking.

Trudeau, in an X post, confirmed the tariff pause, stating, “Proposed tariffs will be paused for at least 30 days while we work together,” He detailed a $1.3 billion border security plan involving increased personnel, technology, and enhanced coordination with the US to combat fentanyl trafficking.

This plan includes deploying almost 10,000 border personnel and appointing a “fentanyl czar” to lead the fight against the opioid crisis. Further initiatives include designating cartels as terrorist organizations, establishing 24/7 border surveillance, and creating a joint Canada-US strike force to combat organized crime, fentanyl trafficking, and money laundering. Trudeau added, “I have also signed a new intelligence directive on organized crime and fentanyl, and we will be backing it with $200 million.”

Trump expressed satisfaction on Truth Social, stating, “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, Mexican President Claudia Sheinbaum reached a similar agreement with Trump, involving deploying 10,000 National Guard troops to the border in exchange for increased US efforts to stop weapons trafficking into Mexico.

Markets initially reacted with volatility to Trump’s tariff announcements, experiencing a period of what was termed a “Trump tariff tantrum,” before recovering following the Mexico deal announcement.

Trump has repeatedly used tariffs as a negotiating tactic. While a 30-day delay for the 10% tariffs on Chinese imports hasn’t been announced, Trump indicated discussions with China were expected within 24 hours.

Trump also hinted at potential tariffs on the EU, prompting responses from EU leaders, including French President Emmanuel Macron and German Chancellor Olaf Scholz, who emphasized their commitment to protecting European interests and the possibility of retaliatory measures.