The ongoing tariff dispute between Canada and the United States has been temporarily paused for at least 30 days following a phone call between Prime Minister Justin Trudeau and US President Donald Trump on Monday.
Trudeau addressed the situation in a statement on X following the call, outlining Canada’s plans to reinforce border security as part of a broader strategy to combat the illegal flow of fentanyl into North America.
The $1.3 billion initiative will see the deployment of new technology, additional personnel, and enhanced coordination with American partners.
Nearly 10,000 frontline personnel will be working to strengthen the border, with additional measures to be implemented.
“As part of our efforts, Canada will be appointing a Fentanyl Czar and listing cartels as terrorists,” Trudeau said. “We will also launch a Canada-US Joint Strike Force focused on organized crime, fentanyl, and money laundering, backed by a $200 million investment.”
Trump, who had previously threatened to impose 25% tariffs on Canadian goods and 10% tariffs on Canadian energy exports effective February 4, 2025, agreed to delay these tariffs for at least 30 days. This pause provides time for both countries to negotiate a final economic deal. In a tweet, Trump expressed his satisfaction with the initial outcome, 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.”
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 tariffs were set to be implemented Tuesday, with Canada preparing retaliatory measures, including a 25% tariff on $30 billion in US goods.
Further tariffs on $125 billion worth of U.S. goods were planned for later in February. However, with the 30-day pause, these measures will be delayed.
Related:
- Majority of Canadians plan to avoid buying US products after tariffs implemented
- Here’s what a tariff is and how it can severely impact British Columbia
- New ‘war room’ cabinet committee formed in BC to protect economy from US tariffs
During a media conference Monday afternoon, BC Premier David Eby announced that he would freeze the government’s response to pulling American liquor from store shelves and blocking US companies from government contracts, though the measures will be ready should the tariffs return.
In addition, the Province will continue to seek out a wider range of export partners to avoid relying solely on the US.
