Trade war: Trump pauses Canada tariffs after talks with Trudeau
Canada had announced a border plan to stem illegal immigration to the United States and the flow of the deadly drug fentanyl
Toronto: Canada will increase its spending on emergency border measures to a total of CA$1.5 billion (approximately US$1.036 billion), appoint a border czar and declare drug cartels as terror organisations, as part of a package to earn a temporary 30-day reprieve from the tariffs threatened by US President Donald Trump.
The announcement in this regard was made by Canadian Prime Minister Justin Trudeau on Monday, after he had two telephonic conversations with Trump on Monday, hours before the 25% tariffs went into force.
Canada had announced a CA$1.3 billion (about US$898 million) border plan to stem illegal immigration to the United States and the flow of the deadly drug fentanyl. Those measures came into force after Trump’s original threat in this regard soon after he was elected President in November.
On Monday, Trudeau said an additional CA$ 200 million (about US$ 138 million) was allocated in this regard, after what he described as “a good call” with Trump.
Canada’s new commitments include appointing a ‘Fentanyl Czar’, listing cartels as terrorists, ensuring “24/7 eyes on the border” and launching a “Canada- U.S. Joint Strike Force to combat organised crime, fentanyl and money laundering”, Trudeau noted in a post on X.
“I have also signed a new intelligence directive on organised crime and fentanyl and we will be backing it with CA$200 million (about US$ 138 million). Proposed tariffs will be paused for at least 30 days while we work together,” he added.
That enhances the CA$ 1.3 billion (about US$898 million) expenditure on a plan which includes implementation of reinforcement the border with new helicopters, technology and personnel, enhanced coordination with American partners, and increased resources to stop the flow of fentanyl. “Nearly 10,000 frontline personnel are and will be working on protecting the border,” he said.
In a post on Truth Social, Trump said 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”.
“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 added.
The tariffs were scheduled to go into force just after midnight, at 12.01am (local time) on Tuesday. Ottawa had announced retaliatory measures on Saturday with the proposed imposition of a 25% tariff on CA$30 billion (approximately US$20.72 billion) of American imports beginning on Tuesday, with a similar rate on CA$125 billion (US$86.34 billion) worth of American goods to follow in 21 days.
The trade war has played out in the absence of any role of Canada’s Parliament, as it is prorogued till March 24, as the Liberal Party conducts its process to select a new leader to replace Trudeau, who, in early January, announced his intent to resign once his successor was finalised.
Conservative Party leader Pierre Poilievre said his party was “relieved” with the pause on tariffs, but added, “We must urgently work to strengthen Canada’s economy and do everything we can to ensure these tariffs are never brought in. Liberals must recall Parliament NOW and put country over Party so that we can put Canada First.”
The House of Commons would currently be in session if the prorogation wasn’t in place.
The Government of the province of Ontario has also paused cancellation of a CA$100 million (about US$69 million) deal with Trump ally Elon Musk’s Starlink, announced as another retaliatory measure. Premier Doug Ford has, in fact, called for a snap election in late February, citing the need for his Conservative government to get a strong mandate to counter the American tariff threat.
