Trump says he paused US tariffs on Canada for at least 30 days after call with Trudeau
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 Canadian goods beginning this week.
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 social media platform he owns, Truth Social, Trump said he was 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 Sheinbaum 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 and threatened to drive up prices for a range of consumer goods. The S&P 500 stock index dropped in early trading Monday, but recovered some of its losses after the Mexico deal was announced.
White House Press Secretary Karoline Leavitt said the market dip had no impact on Trump's decision to pause the tariff on Mexico.
Trump signed executive orders Saturday to impose the 25% tariffs on Mexico and Canada and 10% tariffs on China starting Feb. 4. The orders state tariffs are necessary to help stop the illegal flow of drugs and people to the United States.
Trump pledged during his presidential campaign that he would boost immigration enforcement and combat fentanyl. He has used the tariff threat as a bargaining chip to help deliver on those campaign promises.
Sheinbaum Pardo announced she is sending 10,000 National Guard troops to the border.
Asked Monday if he "blinked" in negotiations with Mexico, Trump pointed to the troop deployment.
“There was no blinking," he said, adding: "She did agree to 10,000 soldiers on the border. I would say that’s a lot. Wouldn’t you say that’s pretty good?"