The United States and Canada have agreed to postpone newly announced tariffs for 30 days following discussions between Canadian Prime Minister Justin Trudeau and US President Donald Trump.
According to The New York Times, the agreement includes enhanced cooperation on border security and measures to combat drug trafficking and money laundering.
Trudeau announced the development on X (formerly Twitter), stating that Canada would deploy nearly 10,000 police officers to strengthen border security, classify drug cartels as terrorist organizations, and appoint a “Fentanyl Czar” to lead anti-drug efforts.
Trump also confirmed the agreement, emphasizing that the tariffs would be “paused for a 30-day period to see whether or not a final economic deal with Canada can be structured.”
As part of the plan, Canada will invest $1.3 billion in new border security technology, helicopters, and personnel. Ontario Premier Doug Ford, responding to the US tariffs, has banned American companies from securing government contracts and canceled a $68 million deal with Elon Musk’s Starlink, which was set to provide internet to remote communities.
The US tariffs, set to take effect on Tuesday, would impose a 25% duty on nearly all Canadian imports except oil, which would face a 10% surcharge. In response, Canada has imposed retaliatory tariffs of 25% on $155 billion worth of US goods, including alcoholic beverages, fresh produce, clothing, and footwear.
Ford described the situation as an economic battle, stressing that Canada had not initiated the trade dispute but was ready to defend its interests. The ongoing negotiations highlight the broader economic and diplomatic challenges as both countries work to mitigate the impact on businesses and consumers.
