According to an announcement made on the social media platform X, Prime Minister of Canada Justin Trudeau concluded a late after call today with U.S. President Donald Trump. It was decided that the 25% tariffs (and 10% duties on energy products) set to take effect on U.S. imports of Canadian goods at 12:01 a.m. ET tonight will be postponed for 30 days. Trudeau announced that Canada will be implementing a $1.3 billion border plan, which includes enhanced coordination with American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel will be working on protecting the border. Trudeau also affirmed to President Trump that Canada will appoint a “Fentanyl Czar,” list cartels as terrorists, ensure 24/7 surveillance on the border, initiate a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering, and invest $200 million in a new Canadian intelligence directive on organized crime and fentanyl.
Previously, Canada had imposed retaliatory tariffs, matching 25% tariffs on up to $155 billion in U.S. imports, including alcohol and fruit. Prime Minister Justin Trudeau announced that $30 billion worth of U.S. goods would be subject to these tariffs starting Tuesday, with an additional $125 billion to follow in 21 days to give Canadian firms time to adjust.
This announcement follows a similar 30-day pause of the 25% Mexico tariff announced this morning after President Trump had a phone call with Mexican President Claudia Sheinbaum. Mexico had also announced retaliatory tariffs but has since retracted them after Mexican President Claudia Sheinbaum agreed to immediately send 10,000 soldiers to her country’s border to prevent drug trafficking. Consequently, President Donald Trump has paused a new 25% tariff on goods entering the United States from Mexico for one month.
The 10% additional China tariffs, announced by President Trump on Saturday, Feb. 1, with an effective time and date of 12:01 a.m. ET on Tuesday, Feb. 4, are still in play as of now. President Trump is set to meet with the President of the People’s Republic of China tomorrow.
A.N. Deringer, Inc. awaits official confirmation from the White House.
For more information, please see sources: NCBFAA, Associate Press, CNBC, and PBS News.