Trump Agrees to 1-Month Tariff Delay on Canada After Talks with Trudeau

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Diplomatic negotiations between Canada and the United States have temporarily averted a costly trade war, as President Donald Trump has agreed to delay steep tariffs on Canadian imports until March 1, following discussions with Prime Minister Justin Trudeau.

The potential economic fallout from Trump’s proposed tariffs loomed large over both nations. Initially, the U.S. president had ordered a 25% tariff on Canadian imports, sparing only energy products, which would have faced a 10% levy. In retaliation, Trudeau swiftly announced countermeasures, targeting $30 billion in American goods—a figure that was set to balloon to $155 billion by the end of the month.

However, after two rounds of phone calls between the leaders on Monday, Canada secured a crucial concession: a one-month postponement of the tariffs. Trudeau confirmed the development in a post on X, formerly Twitter, while Trump has yet to make a public statement on the matter.

 

Screenshot 2025 02 03 at 4.47.43 PM
Screenshot 2025 02 03 at 4.47.43 PM
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https://x.com/JustinTrudeau/status/1886529228193022429

The U.S.-Canada breakthrough follows a similar deal struck earlier in the day between Trump and Mexico. In exchange for postponing tariffs, Mexican President Claudia Sheinbaum agreed to deploy 10,000 National Guard troops to its northern border, reinforcing efforts to curb drug trafficking and illegal migration.

While no such security-related demands were made of Canada, economic analysts suggest that the U.S. administration may be using these tariffs as leverage in broader trade and border negotiations.

Despite the temporary relief, uncertainty lingers over whether the tariffs will take effect in March or be scrapped altogether. With both economies deeply intertwined—Canada is the U.S.’s largest trading partner—business leaders on both sides of the border are closely monitoring the situation.

For now, the delay offers breathing room for further diplomatic talks, but the threat of escalating trade tensions remains. As the deadline approaches, the stakes couldn’t be higher for industries reliant on cross-border trade.

NEWS

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