President Donald Trump announced Monday that proposed U.S. tariffs on Canadian goods have been paused for 30 days, citing efforts by Canadian leaders to secure the border.
The announcement followed an afternoon call between Trump and Canadian Prime Minister Justin Trudeau. Trump had threatened 25% tariffs on all Canadian goods beginning this week unless the country did more to stop the flow of unauthorized migrants and fentanyl into the U.S.
Trudeau said in a statement that Canada is spending $1.3 billion on “reinforcing the border.” Roughly 10,000 “frontline personnel are and will be” working on border protection, the country is appointing a “Fentanyl Czar” and will designate drug cartels as terrorists, Trudeau said. He added that Canada would spend $200 million on a new intelligence program targeted at organized crime and fentanyl.
On the platform he owns, Truth Social, Trump said he was very pleased with the deal, noting “As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that.”
Trump also paused proposed 25% tariffs on Mexico Monday after reaching a deal with Mexican President Claudia Scheinbaum Pardo for more border enforcement.
The announcements averted an immediate trade war between the U.S. and two of its closest allies that had spooked investors. The S&P 500 stock index dropped in early trading Monday but recovered some of its losses after the Mexico deal was announced.
