Prime Minister Justin Trudeau and U.S. President Donald Trump said Monday that U.S. tariffs on Canada will be “paused” for up to 30 days after Trudeau agreed to border security measures in an afternoon call.
The call, the second held between the two leaders Monday, came just hours before 25 per cent tariffs on Canadian goods were set to take effect Tuesday, along with 10 per cent tariffs on energy exports to the U.S.
In a social media statement, Trudeau said Canada is implementing the $1.3-billion border security plan first unveiled in December, which 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.”
“Proposed tariffs will be paused for at least 30 days while we work together,” the prime minister said.

Trudeau added Canada will invest another $200 million to back “a new intelligence directive on organized crime and fentanyl,” appoint a “fentanyl czar,” list drug cartels as terrorist organizations, and launch a new Canada-U.S. joint strike force to combat fentanyl, organized crime and money laundering.
The deal Trudeau announced was similar to the one announced by Trump and Mexican President Claudia Sheinbaum earlier Monday that delayed the implementation of tariffs on Mexico for one month as well.
But it also includes several border security measures the federal government has already committed to, and that Canadian officials have spent weeks detailing to Trump administration officials and U.S. lawmakers in Washington.
“I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured,” Trump wrote in a social media post.
Both Canada and Mexico agreed to deploy roughly 10,000 additional personnel to their respective borders with the U.S. as part of the deals that suspended Trump’s tariffs. Trudeau said Canada’s personnel “are and will be” in place.

Conservative Leader Pierre Poilievre said he was “relieved” to see the tariffs paused, but repeated his call for Parliament to return from prorogation so MPs can pass new economic and security measures to counter Trump’s threats.
“This is not a time to sit back,” Poilievre wrote on X. “We must urgently work to strengthen Canada’s economy and do everything we can to ensure these tariffs are never brought in.”
Still unclear if tariffs tied to border or economic concerns
The agreement came after a day when all eyes were on the two leaders as Canada braced for news on the impending tariffs.
Asked in the Oval Office after the deal with Mexico was announced if there was anything Canada can do to get its own reprieve, Trump said “I don’t know,” but then turned to his frequently mentioned push to acquire Canada.

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“I’d like to see Canada become our 51st state,” he told reporters.
“We give them protection, military protection. We don’t need them to build our cars. … We don’t need them for lumber, we don’t need them for anything. We don’t need them for energy.”
Trump has linked his threat of tariffs on Canada and Mexico to fentanyl and migrants crossing the border into the U.S., a position backed up by members of his administration and several Republican lawmakers in Congress.
“This is a drug war, not a trade war,” Trump’s trade advisor Peter Navarro told reporters outside the White House on Monday, adding Canada should match the deal struck with Mexico.
Less than one per cent of fentanyl seizures and migrant encounters at U.S. borders come from Canada, according to U.S. Customs and Border Protection data, although those numbers are higher than previous years. Canada is also seeing a rise in large fentanyl producers, according to RCMP intelligence.
Ottawa has spent the past few weeks rolling out measures from the border security plan, including deploying Black Hawk helicopters, and officials have been briefing the Trump administration on its progress reducing illegal cross-border activity and shutting down fentanyl labs.
But Trump’s border czar Tom Homan, one of the officials who met with Canadian ministers last week, said during an interview with Fox News on Sunday — after Trump’s executive order announcing the tariffs — that he hadn’t yet shared details from the Canadian presentation with the president.
“I will brief him on what I heard… so he knows what they have done, what they said they will do,” Homan said.
On Monday, Trump raised a new grievance about Canada not allowing U.S. banks into the country.
Several smaller U.S. banks operate branches in Canada, but regulations ensure the largest banks, commonly referred to as the “Big Five,” are Canadian-owned to ensure financial independence and regulatory stability.
Trump said he raised the banking issue with Trudeau in their morning call and suggested that was something he wanted to see addressed in any trade deal, and tied it to what he said is the larger issue of countries not treating the U.S. fairly.
“All we want is a fair deal,” he said, adding he wants “reciprocal” tariffs on trading partners that charge their own duties on American imports.
“Many of the countries that you feel so horrible about, the way they’re being treated by Trump — you’re saying, ‘Oh, President Trump is so terrible to them’ — well they charge us tariffs.
“A lot of these countries, they’re so-called allies, but they don’t treat us well,” he continued.
Provinces back off from retaliation after tariffs paused
Ottawa was set to impose 25 per cent tariffs on $30 billion in goods originating in the U.S., hitting hundreds of items, from meat and milk to carpets and curtains.
Canada’s initial tariff response was due to take effect Tuesday, when the American tariffs are being applied, with additional rounds of responses to follow.
Provinces and territories were also preparing to retaliate, including by cancelling U.S. business contracts and pulling American products from liquor store shelves.
Those measures were put on hold after Trudeau’s announcement, but premiers warned they would return if Trump decides to proceed with tariffs.
“Make no mistake, Canada and Ontario continue to stare down the threat of tariffs,” Ontario Premier Doug Ford, who is currently running for re-election, said in a statement.
“So long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen and projects that were already underway put at risk.”
Earlier Monday, Ford said he would cancel a $100-million contract with internet satellite firm Starlink, which is owned by Trump ally Elon Musk. That deal is now back on for now, a Ford spokesperson said late Monday.
B.C Premier David Eby said on Monday afternoon that the province is pausing all retaliatory measures against the U.S.
However, he said, this pause does not mean the work they have started to develop different and beneficial trading partners will end.
“That doesn’t mean that we will abandon our preparations for non-tariff measures if there’s a tweet tomorrow that puts the tariffs back on,” Eby said.

Alberta Premier Danielle Smith, who has pushed the federal government to answer Trump’s demands on border security and “de-escalate rhetoric,” said she was “greatly heartened” by the deal.
“Diplomacy has won the day,” she posted on X. “Let us ensure that continues as we know there is much more work ahead of us.”
Quebec Premier Francois Legault told reporters he was “happy” there was now more time to reach a solution with the U.S., but said work must continue on diversifying Canadian trade — both between provinces and with other countries — and improving productivity.
“For me, it’s not a complete victory,” he said. “Mr. Trump still wants to attack Canada.”
Premiers are still set to travel to Washington, D.C., next week on a diplomatic mission to foster Canada-U.S. ties.
Goldy Hyder, president and CEO of the Business Council of Canada, said “much uncertainty remains” despite the tariff pause.
“Regardless of what happens next, it is clear that Canada needs to act with urgency to improve our long-term economic prospects,” Hyder said in a statement.
Trump has waved away concerns about tariffs raising prices for American consumers or affecting the stock market, as well as the potential impacts of the Canadian response.
He said the issue of tariffs would go away entirely if Canada becomes a U.S. state.
“I’d love to see that, but some people say that would be a longshot,” he admitted Monday.
“If people wanted to play the game right, it would be 100 per cent certain that they become a state, but a lot of people don’t like to play the game because they don’t have a threshold for pain. And there would be some pain, but not a lot, and it would mostly be theirs.”
Economists have said Canada could enter a recession in a wide-scale trade war, leading to lost jobs and business investment, while the U.S. will see a rise in inflation — something Trump promised to bring down during his presidential campaign.
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