Canadian Prime Minister Justin Trudeau announced that the United States has agreed to delay the implementation of tariffs on Canadian imports by at least 30 days, following a phone conversation with US President Donald Trump on Monday. The agreement comes after Trump’s decision on Saturday to sign an executive order imposing 25% tariffs on imports from Mexico and Canada and 10% on imports from China, citing concerns over illegal immigration and drug trafficking.
According to Trudeau, the proposed tariffs will be put on hold for at least 30 days, while the two countries work together. Canada has committed to strengthening its border security, with a plan worth $1.3 billion, including the deployment of nearly 10,000 border agents, new technology and additional resources to stop the flow of fentanyl.
As part of the agreement, Canada has also announced new initiatives, including the appointment of a fentanyl czar to coordinate efforts to combat the opioid crisis and stop the fentanyl trade. Trudeau emphasized that Canada will treat cartels as terrorists, monitor the border 24/7 and establish a joint US-Canada strike force to combat organized crime, fentanyl and money laundering.
Trump expressed his satisfaction with the initial outcome of the agreement in a post on Truth Social, stating, “I am very happy with this first result and the tariffs announced on Saturday will be put on hold for 30 days to see if a final trade agreement with Canada can be structured or not. JUSTICE FOR ALL!”
Earlier, Mexican President Claudia Sheinbaum had reached a similar agreement with Trump, pledging to deploy 10,000 National Guard soldiers to the border between the US and Mexico to combat the fentanyl trade and illegal immigration, in exchange for the US agreeing to strengthen its efforts to stop the flow of weapons to Mexico.
The markets experienced heightened volatility, with major stock indices and cryptocurrency valuations fluctuating in response to what was dubbed the “Trump Tariff Frenzy” before partially recovering after the agreement with Mexico was announced.
Trump has highlighted tariffs as a key negotiation tool in trade talks, both during his first term and after his re-election in 2024.
Trump has not yet offered a 30-day delay for the new 10% tariffs on Chinese imports, but said on Monday he expects to have talks with China “probably within the next 24 hours.”
On Sunday, Trump hinted that the EU could be the next target of US tariffs, without providing a timeline. In response, EU state and government leaders, including French President Emmanuel Macron and German Chancellor Olaf Scholz, emphasized their readiness to defend European interests and consider countermeasures if necessary.