Canada also avoids Trump’s tariffs – for now

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Canada’s Prime Minister Justin Trudeau.
Image: Dave Chan (Getty Images)

Proposed U.S. tariffs on Canadian goods have been paused for 30 days, according to Canadian Prime Minister Justin Trudeau. The pause comes after a similar delay on proposed tariffs on Mexican goods.

“I just had a good call with President Trump,” Trudeau said in an X post on Feb. 3, a day before Trump’s tariff plan was set to take effect.

In exchange, Canada is ramping up its efforts to combat fentanyl trafficking and organized crime at the U.S.-Canada border with a new $1.3 billion security plan, according to the prime minister.

The plan includes boosting border enforcement with new helicopters, technology, and 10,000 frontline workers focused on securing the border.

As part of the initiative, Canada will also appoint a “Fentanyl Czar,” launch a Canada-U.S. Joint Strike Force, and designate drug cartels as terrorist organizations. The country is also committing $200 million to fight fentanyl and organized crime.

Earlier on Monday, Trump also delayed tariffs on Mexico until March. On Sunday, Feb 2, Trudeau announced tariffs on $155 billion of U.S. goods, signaling the start of a tense trade standoff.

The proposed tariffs looked to place a 25% tax on imports from Mexico and Canada, and a 10% tax on imports from China. Canadian crude oil exports were set to be taxed at 10% due to the U.S.’s significant reliance on the Canadian energy source.

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