U.S. President Donald Trump has temporarily eased trade tensions with Canada by announcing a 30-day suspension of the 25% tariff on Canadian goods. The decision follows two rounds of phone discussions between Trump and Canadian Prime Minister Justin Trudeau. On February 1, Trump signed an executive order imposing a 25% tariff on Canadian and Mexican goods, and a 10% tariff on Chinese goods. In retaliation, Trudeau announced that Canada would impose a 25% tariff on American goods starting on Tuesday. This came after Canada had already imposed tariffs on $30 billion worth of U.S. products.
In response, Trudeau appealed to Canadians to buy only Canadian products, while provincial premiers urged citizens to boycott American goods. As part of the protest, stores in several provinces removed American liquor (wine and beer) from their shelves. Amid growing tensions, President Trump quickly sought to de-escalate the situation, showing interest in discussing the matter with Trudeau on Sunday evening. After two phone calls on Monday morning and afternoon, Trump decided to suspend the tariffs.
However, Trump did demand multiple commitments from Canada, including enhanced border security measures to prevent illegal immigration and drug trafficking. Trump has previously claimed that over 100,000 people die annually in the U.S. due to fentanyl overdoses, much of which he attributes to illegal fentanyl smuggled in from Canada and Mexico. Canada denied this claim, stating that virtually none of the fentanyl entering the U.S. comes from its borders, with most of it originating from Mexico.
In addition to border security, Trump also raised concerns over people allegedly entering the U.S. illegally after visiting Canada. Following their phone discussions, Trudeau revealed that Canada is implementing a $1.3 billion plan to enhance border security. This includes the acquisition of new helicopters, increased personnel, and improved technology, as well as stronger coordination with U.S. officials to combat illegal activities.
Furthermore, Trudeau announced the formation of a joint Canada-U.S. strike force aimed at tackling organized crime and money laundering, with an investment of $200 million. Trudeau took to social media after the talks, stating, “We have decided to work together. As a result, the tariffs will be suspended for at least 30 days.” Trump also expressed his satisfaction with Canada’s commitment to strengthening border security, though he called it only the “initial result.”
In a tweet following their first phone call, Trump had also suggested that Canada open its markets to U.S. banks and financial institutions. However, this topic was not discussed in the second conversation.
This development has brought some relief to both Canadian and American citizens, with the Canadian dollar falling to its lowest point against the U.S. dollar and the New York Stock Exchange showing negative impacts. The temporary suspension of tariffs has provided a sense of relief to people in both countries, easing the growing trade tensions between the two neighboring nations.
