Canadian Prime Minister Justin Trudeau on Monday announced that the US’s plan to impose 25% tariffs will be on hold for at least 30 days.
Trudeau’s announcement on X comes just hours after President Donald Trump brokered a similar pause with Mexico, effectively halting a trade war between the US and its neighbors for now.
“Proposed tariffs will be paused for at least 30 days while we work together,” Trudeau posted.
The White House did not respond to Business Insider’s request for comment. Trudeau spoke with Trump on Monday afternoon, and Trump told reporters at the White House that his call with Trudeau “went very well.”
Trump has said that tariffs are needed to get Mexico and Canada to address the flow of fentanyl into the US. In his statement, Trudeau said Canada would be implementing a $1.3 billion border plan that would involve “reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.”
He said that Canada would be devoting nearly 10,000 personnel to protect the border, and that Canada is committing to appointing a Fentanyl Czar, among other actions.
Over the weekend, Trudeau laid out a plan for more than $100 billion in retaliatory tariffs if Trump did not relent. Canada’s list of tariffed goods targeted Trump’s political base, covering everything from Florida oranges and Kentucky bourbon to appliances made in Vice President JD Vance’s home state of Ohio.
Elon Musk wasn’t immune from the fallout. Ontario Premier Doug Ford wrote on X that he would be “ripping up the province’s contract” with Space X’s Starlink.
Canada’s first retaliatory tariffs were set to go into effect Tuesday. Additional measures were expected to apply to US tech exports, which were absent from the first list.
During Trump’s first term, nations designed tariffs to inflict political damage. Kentucky bourbon was frequently targeted due to Sen. Mitch McConnell‘s status as Senate Majority Leader.
In recent weeks, Trump and his allies have repeatedly criticized Canada. Before taking office, Trump said that the US biggest trade partner should be the 51st state. Trump’s taunts came during a difficult time for Trudeau.
The Canadian leader’s popularity collapsed before he announced last month that he would resign as prime minister once the Liberal Party selects a new leader.
This story is developing.
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