On February 3, 2025, Canadian Prime Minister Justin Trudeau announced that the United States and Canada have agreed to postpone the implementation of tariffs for 30 days. This decision follows discussions between Prime Minister Trudeau and U.S. President Donald Trump, focusing on enhancing border security and addressing drug trafficking concerns.
In a statement on social media platform X, Trudeau shared, “I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan—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 further detailed that Canada will deploy nearly 10,000 front-line police officers to secure the border, designate drug cartels as terrorist organizations, appoint a “Fentanyl Czar,” and intensify efforts against money laundering.
Prior to this agreement, Ontario Premier Doug Ford announced that the province would ban contracts with U.S. companies in response to the planned tariffs. This move included canceling a nearly $70 million deal with Elon Musk’s Starlink, which was intended to provide high-speed internet to 15,000 homes and businesses in remote areas. Ford emphasized that U.S. businesses stand to lose significant revenue due to these tariffs, stating, “Starting today, and until U.S. tariffs are lifted, Ontario is banning American companies from provincial contracts.”
President Trump had previously announced that, starting Tuesday, the U.S. would impose a 25% tariff on nearly all Canadian imports, with oil facing a 10% surcharge. In response, Canada had planned to implement its own tariffs on U.S. imports, placing a 25% levy on $155 billion worth of goods, including beer, wine, bourbon, fruits, vegetables, perfume, clothing, and shoes.
The 30-day postponement provides both nations with additional time to negotiate and potentially reach a more permanent resolution to the trade dispute.
