New Delhi: Canadian Prime Minister Justin Trudeau on Monday confirmed that the 25% tariffs slapped by US President Donald Trump on Canada’s exports will be halted for “at least 30 days,” as the two leaders agreed to join hands on addressing concerns related to illegal immigration and fentanyl drug.
Earlier, Canada had declared retaliatory 25% tariffs on US imports, which were to become effective on Tuesday. Ottawa’s tariffs targetted items such as beer, wine, household appliances, and sporting goods.
‘To appoint Fentanyl Czar’
After a “good call with Trump” on Monday, Trudeau said Canada will bring into effect a $1.3 billion plan to reinforce the border with new choppers, technology and personnel to boost coordination with “American partners” and increase resources to stop the flow of fentanyl. “Nearly 10,000 frontline personnel are and will be working on protecting the border,” Trudeau wrote on X.
He pointed out: “In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million,” he added.
I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…
— Justin Trudeau (@JustinTrudeau) February 3, 2025
Trudeau had stood firm, sounding a warning that the tariff war could harm the economies of both nations. “We’re ready with a response—a purposeful, forceful but reasonable, immediate response. It’s not what we want, but if he moves forward, we will also act,” Trudeau had said.
Earlier, US President Donald Trump on Monday decided to halt his proposed tariffs on Mexico and Canada for 30 days. The decision followed measures taken by both the countries to address his concerns related to border security and drug trafficking. The pause came after several days of uncertainty that triggered concerns about a potential trade war in North America, which could have affected economic growth, shot up prices, and put a strain on vital trade ties.
‘Fairness for all’
Trump said on social media, “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. FAIRNESS FOR ALL!”
While Canada said it will undertake a slew of steps, Mexico also struck a similar agreement with the US. The halt in tariffs provides time for negotiations on drug smuggling and illegal immigration. However, the 10 percent tariff slapped on Chinese imports will stay, as Trump is scheduled to speak with Chinese President Xi Jinping in the coming days.
Uncertainty still looms
Even though the immediate risk of a trade war has faded, the uncertainty still looms. Trump may reimpose the tariffs and is also preparing to declare a new set of tariffs on imports from the European Union.
On Saturday, Trump had issued orders to impose 25 per cent tariffs on goods from Mexico and Canada and a 10 per cent tariff on Canadian oil, natural gas, and electricity. Analysts had sounded a warning that the new tariffs could impede economic growth, reduce incomes, and spike prices. However, Trump justified them, saying they were essential to combat illegal immigration, and drug smuggling.
Trump and Mexican President Claudia Sheinbaum declared the halt after what Trump called a “very friendly conversation”. He said, “I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries.” Trump also said his telephone call with Trudeau went “very well”.
