After Mexico, U.S. President Donald Trump has now temporarily suspended tariffs on Canada following a security agreement between the two nations.
According to Reuters, a 25% tariff on Canadian imports was set to take effect on Tuesday. However, just hours before implementation, Canadian Prime Minister Justin Trudeau spoke with Trump over the phone. Following their discussion, both leaders reached an agreement to suspend the tariffs for 30 days.
Security Measures in Exchange for Tariff Suspension
The primary reason behind this decision was Canada’s commitment to stricter border security measures, particularly to curb illegal immigration and drug trafficking.
President Trump stated that Canada has agreed to strengthen its northern border security and take action against the smuggling of harmful drugs like fentanyl.
In response, Prime Minister Trudeau announced that Canada will deploy nearly 10,000 troops to its northern border to enhance security. Additionally, Canada will classify drug traffickers as terrorists and appoint a “Fentanyl Czar” to oversee efforts in combating fentanyl smuggling. The country also pledged to take stronger action against money laundering operations.
Trump’s Previous Agreement with Mexico
This move comes shortly after Trump suspended tariffs on Mexico under similar conditions. The U.S. president had previously agreed to a one-month tariff suspension after a “friendly discussion” with Mexican President Claudia Sheinbaum. As part of the deal, Mexico agreed to deploy 10,000 troops along its border with the U.S.
Following the agreement, Sheinbaum confirmed that Trump’s decision came with strict conditions, including reinforced border security measures and a crackdown on illegal drug trafficking into the United States. Mexico has already begun implementing these measures.
As the 30-day suspension period begins, analysts will closely monitor whether both Canada and Mexico uphold their commitments, as failure to do so may result in tariffs being reimposed.
