U.S. President Trump has postponed tariffs on Canadian goods for 30 days, aligning with a similar arrangement with Mexico to enhance border security collaboration. Canadian Prime Minister Trudeau emphasized a $1.3 billion initiative to strengthen defenses against drug trafficking, particularly fentanyl. Canada plans to label Mexican drug cartels as terrorist organizations and join forces with the U.S. to combat organized crime. Both nations are set to negotiate further, while Trump also targets China with increased tariffs.
In a significant move, U.S. President Trump has granted Canada a 30-day delay on the tariffs he previously threatened, following a similar arrangement with Mexico. This decision reflects a commitment to enhance cooperation on border security between the two nations.
Just hours before the tariffs were set to take effect, President Trump announced a temporary suspension on punitive tariffs for Canadian goods. Prime Minister Justin Trudeau took to platform X to share that he and Trump agreed to collaborate more closely on border issues.
Trudeau highlighted that Canada is prioritizing a $1.3 billion border security initiative aimed at bolstering defenses with advanced helicopters, technology, and personnel. He noted that coordination with U.S. partners would improve, and more resources would be dedicated to curtailing the influx of fentanyl. Additionally, nearly 10,000 personnel will remain active in border security efforts, with further actions planned against cross-border crime.
Both countries are set to engage in negotiations over the coming weeks to solidify their agreement.
Canada Designates Mexican Drug Cartels as Terror Organizations
In an important development, Canada will designate Mexican drug cartels as terrorist organizations and will form a ‘joint special unit’ with the U.S. to tackle organized crime, fentanyl trafficking, and money laundering. Trudeau described his conversation with Trump as ‘productive.’
Trudeau appears to be seeking to appease Trump with a somewhat familiar proposition. The $1.3 billion border security plan was initially presented by Ottawa after Trump’s election, and has been interpreted by Canadian media as a concession to the new U.S. administration.
In response to these developments, Mexico is contemplating counter-tariffs. Canada’s Prime Minister has expressed intentions to implement them, including a heartfelt message directed at Trump.
Similar Arrangement Established with Mexico
Shortly after the announcement, Trump confirmed the agreement, emphasizing his responsibility as president to ‘ensure the safety of all Americans.’ He stated that Canada had committed to securing the northern border and putting a stop to the devastating drug crisis, particularly fentanyl. He expressed satisfaction with this initial progress and indicated that the next 30 days would be crucial for determining whether a final economic agreement with Canada could be reached, insisting on ‘fairness for all.’
This recent cooperation follows a comparable agreement with Mexico, where Trump lifted previously imposed tariffs for 30 days. In exchange, Mexico assured the deployment of 10,000 troops to help combat drug trafficking along the U.S.-Mexico border.
Currently, the U.S. has tariffs in place on goods from Canada and Mexico, while the EU faces similar threats.
China Also Faces U.S. Tariff Measures
On Saturday, Trump announced tariffs that could reach up to 25 percent on goods from both Mexico and Canada, which were scheduled to take effect at midnight local time. Both countries have indicated their readiness to respond with counter-tariffs of their own.
The new U.S. administration is also setting its sights on China, proposing a 10 percent increase in tariffs on Chinese products. Trump mentioned that discussions with Chinese officials regarding these tariffs are expected to occur within the next day.
The U.S. president has accused Canada, Mexico, and China of insufficient efforts to address the trafficking of fentanyl, a substance responsible for approximately 75,000 overdose deaths in the U.S. each year. This opioid is often synthesized in Mexico using chemicals sourced primarily from China, and then smuggled into the United States.