President Donald Trump and Canadian Prime Minister Justin Trudeau announced a short-term deal on Monday evening to delay the enforcement of 25 percent tariffs on each other’s goods for 30 days while they finalize a border security arrangement. Trump, 78, and Trudeau, 53, had two phone conversations earlier in the day before reaching the deal.
As part of the temporary deal, Canada will deploy 10,000 troops to guard the northern border, and Trudeau has committed to strengthening efforts to curb fentanyl smuggling. White House officials claimed that the agreement was a major success, while Canadians noted that Trudeau was merely reiterating a strategy that had already been announced in December.
Halted for the Time Being
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“Canada has agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl that have been pouring into our Country,” Trump wrote on Truth Social, following his call with Trudeau. “Canada will implement their $1.3 Billion Border plan.”
“As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that,” he added. “I am very pleased with this initial outcome.”
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In a separate post on X, Trudeau announced that Canada would proceed with its $1.3 billion border initiative, originally announced in December—weeks after Trump initially warned of the 25 percent tariffs, which were set to take effect at 12:01 a.m. on Tuesday. Canadian energy products, however, would have faced a reduced 10% tariff.
That deal, Trudeau said, includes “reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.”
“In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. [sic] Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”
The Big Deal
Earlier on Monday, Trump and Mexican President Claudia Sheinbaum reached a similar deal to postpone the impending 25 percent tariff on Mexico for one month. Mexico confirmed it would deploy 10,000 troops to its northern border and said that the U.S. had agreed to help in efforts to curb illegal weapons trafficking into Mexican territory.
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Trump initially warned in November that he would impose tariffs on Canada and Mexico if they failed to meet his demands to reduce the flow of fentanyl, its precursor chemicals, and illegal immigration into the United States.
Shortly after Trump issued the threat, Trudeau traveled to Mar-a-Lago to meet with the then-incoming U.S. president—a decision that was widely criticized by his domestic opponents as a sign of weakness.
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In early January, Trudeau announced his intention to step down as leader of Canada’s Liberal Party once a successor is selected in March. Canada is scheduled to hold elections in October.
The 25 percent tariff would have had severe consequences for Canada, as nearly 75 percent of its exports go to the U.S., whereas only about 13 percent of American exports are sent to Canada.
According to data from the U.S. Census Bureau, the United States imported around $377 billion in goods from Canada last year while exporting $322 billion in return. In total, around $1.4 trillion—or 40 percent—of America’s yearly imports come from its three biggest trading partners: Canada, Mexico, and China.
