Canadian Prime Minister Justin Trudeau announced that the United States will delay the implementation of 25% tariffs on Canadian imports for at least 30 days following discussions with U.S. President Donald Trump.
The agreement was reached during a phone call on Monday, where Canada pledged to bolster border security. This development came after Trump signed executive orders on Saturday imposing tariffs — 25% on imports from Mexico and Canada and 10% on Chinese goods — citing concerns about illegal immigration and drug trafficking.
“Tariffs will be paused for at least 30 days while we collaborate,” Trudeau shared on X. “Canada is rolling out our $1.3 billion border plan, which includes new helicopters, advanced technology, and personnel, along with enhanced cooperation with American partners and increased efforts to combat fentanyl trafficking.”
As part of the deal, nearly 10,000 frontline personnel will be deployed to reinforce border security. Canada also introduced new measures, including appointing a fentanyl czar to lead efforts against the opioid crisis and trafficking.
“We will designate cartels as terrorists, maintain 24/7 border surveillance, and launch a Canada-U.S. Joint Strike Force to tackle organized crime, fentanyl smuggling, and money laundering,” Trudeau stated. He further noted a $200 million allocation to back a new intelligence directive on fentanyl and organized crime.
Trump expressed satisfaction with the initial agreement in a Truth Social post, saying, “I am very pleased with this outcome, and tariffs announced on Saturday will be paused for 30 days to explore a potential economic deal with Canada. FAIRNESS FOR ALL!”
On the same day, Mexican President Claudia Sheinbaum reached a similar deal with Trump, agreeing to deploy 10,000 National Guard troops to the U.S.-Mexico border to combat fentanyl trafficking and illegal immigration. In return, the U.S. committed to intensifying efforts to curb weapon trafficking into Mexico.
Financial markets experienced heightened volatility as major stock indices and cryptocurrencies fluctuated following what analysts termed a “Trump tariff tantrum.” However, they recovered some losses after news of the Mexico agreement emerged.
While the U.S. granted Canada a temporary reprieve, Trump did not offer a similar delay for the 10% tariffs on Chinese imports but mentioned possible discussions with Chinese officials “probably within the next 24 hours.”
On Sunday, Trump hinted at potential tariffs targeting the European Union without providing a specific timeline. In response, European leaders, including French President Emmanuel Macron and German Chancellor Olaf Scholz, pledged to protect Europe’s interests and warned of reciprocal measures if necessary.
