To tariff or not to tariff: why has Trump temporarily lifted the tariffs against Canada?

By now you’ve probably heard that Prime Minister Justin Trudeau announced that U.S. tariffs on Canadian goods will be paused for at least 30 days. The tariffs, which were set to take effect the next day, included 25% duties on Canadian goods and 10% tariffs on energy exports. This situation seemed tense (to say the least), so what changed?

In a phone call on Monday, the two leaders discussed measures to enhance border security, including Canada’s $1.3-billion plan to tackle issues like fentanyl trafficking. This plan, first proposed in December, includes new personnel, helicopters, and technology at the border, as well as more intricate coordination with U.S. authorities. Additionally, Canada will appoint a “fentanyl czar,” increase resources to combat organized crime, recognize cartel members as terrorists, and introduce a joint Canada-U.S. task force to combat drug trafficking and money laundering.

Seemingly pleased by these promises, Trump agreed to delay the tariffs for 30 days to allow time for further negotiations. This agreement mirrors a similar deal made with Mexico earlier the same day, which also delayed tariffs for a month. He even took to his social media and said that he had a “very friendly conversation” in which President Claudia Sheinbaum agreed to supply 10,0000 Mexican soldiers to the U.S./Mexico border. 

While it seems like Canada can breathe a sigh of relief for now, Trump voiced ongoing concerns about Canada’s banking regulations, specifically the exclusion of U.S. banks from the Canadian market. He framed this as part of a larger desire for “fair” trade deals that include reciprocal tariffs.

As Canada avoided the immediate threat of tariffs, provincial leaders, including Ontario’s Doug Ford, warned that the situation remains volatile. They emphasized that if the tariff issue resurfaces, retaliatory measures would be swiftly implemented, with possible impacts on U.S.-based business contracts.

The 30-day pause gives both countries time to negotiate, but tensions surrounding trade and border security remain high. How do you feel about the tariffs being postponed?