The Canada-US trade war has a 30-day détente.
Prime Minister Justin Trudeau announced that US tariffs on Canada would be paused for at least 30 days after multiple discussions with US President Donald Trump today.
Following a second phone call with President Trump this afternoon, Trudeau announced new commitments to securing the Canada-US border, including appointing a “Fentanyl Czar,” listing drug cartels as “terrorists,” and launching a Canada-US Joint Strike Force to crack down on “organized crime, fentanyl, and money laundering.”
“Make no mistake, Canada and Ontario continue to stare down the threat of tariffs.”
Ontario Premier Doug Ford
Canada also pledged $200 million toward a “new intelligence directive” to target organized crime and fentanyl.
Trudeau reiterated Canada’s rollout of a $1.3-billion border plan for bolstered border security resources including helicopters, technology, and staff, as well as “enhanced coordination with our American partners.”
Ontario Premier Doug Ford said in a statement on X that the province will also pause its “retaliatory measures” in response.
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“If President Trump proceeds with tariffs, we won’t hesitate to remove American products off LCBO shelves or ban American companies from provincial procurement,” Ford said.
“Make no mistake, Canada and Ontario continue to stare down the threat of tariffs. Whether it’s tomorrow, in a month or a year from now when we’re renegotiating the United States-Mexico-Canada Agreement, President Trump will continue to use the threat of tariffs to get what he wants.”
Ford added that Canada is already feeling the impact of the proposed tariffs. In response, Ford mentioned projects that have already been paused or put in jeopardy, appearing to directly reference Ontario’s contract with Elon Musk’s Starlink, which he announced he would cancel earlier today as part of a broader ban on US contracts.
“The 30-day pause on U.S. tariffs represents a reprieve for the Canadian economy, but the threat remains just as clear and present,” Benjamin Bergen, president of the Council of Canadian Innovators (CCI), said in a statement. “This aggression was never just about border security and fentanyl, and we can count on Donald Trump to come back demanding more concessions from us later, backed by the same old threats.”
Bergen said CCI was heartened by Canadian business leaders and politicians taking a “unified approach” to supporting homegrown businesses. He added that Canada should take the next 30 days to build up “economic resilience” and develop policies to respond to US economic threats.
On Feb. 1, US President Donald Trump signed an executive order to implement 25-percent tariffs on virtually all Canadian goods and 10-percent tariffs on Canadian energy starting Tuesday. The move follows Trump’s repeated tariff threats over what the White House claimed was Canada’s failure to stop the flow of fentanyl and illegal crossings into the US.
In response, the Canadian government responded by imposing 25-percent tariffs on $155 billion of American goods, with tariffs on the first $30 billion that were set to take effect on Tuesday. The rest would follow after a 21-day public comment period.
In a post on Truth Social, President Trump said he was “very pleased with this initial outcome” of today’s conversations and confirmed that the proposed tariffs would be paused for 30 days “to see whether or not a final economic deal with Canada can be structured.” He reiterated that increased security to the Canada-US border would reduce the flow of fentanyl into the US.
According to the Canadian government, less than one percent of fentanyl smuggled into the United States crosses through the Canadian border. Data from U.S. Customs and Border Protection shows that the volume of illegal drugs seized at the US-Canada border has declined since 2022.
Feature image courtesy Justin Trudeau via Flickr.