US, Canada agree to 30-day tariff postponement
The United States and Canada on Monday reached an agreement to postpone newly announced tariffs for 30 days, following discussions between Canadian Prime Minister Justin Trudeau and US President Donald Trump.
According to The New York Times, the agreement includes increased cooperation on border security and measures aimed at addressing issues such as drug trafficking and money laundering.
Trudeau announced the development on Monday on X, “I just had a good call with President Trump,” stating that Canada would deploy nearly 10,000 police officers to enhance border security, classify drug cartels as terrorist organizations, and appoint a special official, referred to as a “Fentanyl Czar,” to lead efforts against the spread of the drug.
Trump soon posted, as well, focusing on fentanyl and emphasizing that tariffs would be “paused for a 30-day period to see whether or not a final economic deal with Canada can be structured,” Trudeau wrote.
The plan also involves a $1.3bn investment in new border security technology, helicopters, and personnel.
“Canada is implementing our $1.3 billion border plan — 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…,” he said.
Meanwhile, Ontario Premier Doug Ford has taken a firm stance in response to the US trade measures.
On Monday, he announced that the province would prohibit American companies from securing government contracts, citing the economic impact of the tariffs.
As part of this policy, Ontario has also canceled a $68m agreement with Elon Musk’s Starlink, which was set to provide high-speed internet to remote communities.
“Starting today, and until US tariffs are lifted, Ontario is banning American companies from provincial contracts,” Ford stated. He added that Ontario’s government agencies collectively spend around $30bn annually on procurement, with an additional $200bn allocated for infrastructure projects.
The US tariffs, which are scheduled to take effect on Tuesday, will impose a 25 percent duty on nearly all Canadian imports, except for oil, which will be subject to a 10 percent surcharge. In response, Canada has announced its own set of retaliatory tariffs, imposing a 25 percent levy on $155 billion worth of American goods, including alcoholic beverages, fresh produce, clothing, and footwear.
Ford described the situation as an economic battle, emphasising that Canada had not initiated the trade dispute but was prepared to respond accordingly.
The ongoing negotiations between the two countries highlight the broader economic and diplomatic implications of the trade policies as both governments seek to navigate the impacts on businesses and consumers on both sides of the border.
