Tag: Canada

Prime Minister Justin Trudeau says U.S. tariffs on Canada will be paused “for at least 30 days” after agreeing on border security measures with U.S. President Donald Trump on Monday afternoon.

The call, the second held between the two leaders Monday, came just hours before 25 per cent tariffs on Canadian goods were set to take effect Tuesday, along with 10 per cent tariffs on energy exports to the U.S.

“I just had a good call with President Trump,” Trudeau wrote on X.

He said Canada is implementing the $1.3-billion border security plan first unveiled in December, which includes “reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.”

Trudeau said nearly 10,000 frontline personnel “are and will be working on protecting the border.”

Canada will also appoint a “fentanyl czar,” list drug cartels as terrorist organizations, “ensure 24/7 eyes on the border,” and launch a new Canada-U.S. joint strike force to combat fentanyl, organized crime and money laundering, the prime minister added.

“I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million,” he wrote.

“Proposed tariffs will be paused for at least 30 days while we work together.”

The deal Trudeau announced was similar to the one announced by Trump and Mexican President Claudia Sheinbaum earlier Monday that delayed the implementation of tariffs on Mexico for one month as well.

But it also includes several border security measures the federal government has already committed to, and that Canadian officials have spent weeks detailing to Trump administration officials and U.S. lawmakers in Washington.

“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,” Trump wrote in a social media post.

The news came after a day when all eyes were on the two leaders as Canada braced for news on the impending tariffs.

Asked in the Oval Office after the deal with Mexico was announced if there was anything Canada can do to get its own reprieve, Trump said “I don’t know,” but then turned to his frequently mentioned push to acquire Canada.

“I’d like to see Canada become our 51st state,” he told reporters.

“We give them protection, military protection. We don’t need them to build our cars. … We don’t need them for lumber, we don’t need them for anything. We don’t need them for energy.”

Trump has linked his coming trade war with Canada to fentanyl crossing the border into the U.S., a position backed up by members of his administration and several Republican lawmakers in Congress.

“This is a drug war, not a trade war,” Trump’s trade advisor Peter Navarro told reporters outside the White House after the deal with Mexico was announced, which Navarro said Canada should match.

Yet on Monday, Trump raised a new grievance about Canada not allowing U.S. banks into the country.

Several smaller U.S. banks operate branches in Canada, but regulations ensure the largest banks, commonly referred to as the “Big Five,” are Canadian-owned to ensure financial independence and regulatory stability.

Trump said he raised the banking issue with Trudeau in their morning call and suggested that was something he wanted to see addressed in any trade deal, and tied it to what he said is the larger issue of countries not treating the U.S. fairly.

“All we want is a fair deal,” he said, adding he wants “reciprocal” tariffs on trading partners that charge their own duties on American imports.

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“Many of the countries that you feel so horrible about, the way they’re being treated by Trump — you’re saying, ‘Oh, President Trump is so terrible to them’ — well they charge us tariffs.

“A lot of these countries, they’re so-called allies, but they don’t treat us well,” he continued.

Ottawa was set to impose 25 per cent tariffs on $30 billion in goods originating in the U.S., hitting hundreds of items, from meat and milk to carpets and curtains.

Canada’s initial tariff response was set to take effect Tuesday, when the American tariffs are being applied, with additional rounds of responses to follow.

Provinces and territories were also set to retaliate, including by cancelling U.S. business contracts and pulling American products from liquor store shelves.

Premiers began announcing those measures were being put on hold after Trudeau’s announcement, but warned they would return if Trump decides to proceed with tariffs.

“Make no mistake, Canada and Ontario continue to stare down the threat of tariffs,” Ontario Premier Doug Ford, who is currently running for re-election, said in a statement.

“So long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen and projects that were already underway put at risk.”

Earlier Monday, Ford said he would cancel a $100-million contract with internet satellite firm Starlink, which is owned by Trump ally Elon Musk.

Trump has waved away concerns about tariffs raising prices for American consumers or affecting the stock market, as well as the potential impacts of the Canadian response.

He said the issue of tariffs would go away entirely if Canada becomes a U.S. state.

“I’d love to see that, but some people say that would be a longshot,” he admitted Monday.

“If people wanted to play the game right, it would be 100 per cent certain that they become a state, but a lot of people don’t like to play the game because they don’t have a threshold for pain. And there would be some pain, but not a lot, and it would mostly be theirs.”

Economists have said Canada could enter a recession in a wide scale trade war, leading to lost jobs and business investment, while the U.S. will see a rise in inflation — something Trump promised to bring down during his presidential campaign.