The US and Canada have agreed to delay newly announced tariffs for 30 days, with measures to enhance border security and combat fentanyl trafficking
On Monday, the United States and Canada reached a significant agreement to delay newly announced tariffs for 30 days, following productive discussions between Canadian Prime Minister Justin Trudeau and US President Donald Trump.
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This decision comes amid rising tensions over trade measures and drug-related security concerns.
The agreement, which was confirmed by both leaders, focuses on increasing cooperation in border security, with a particular emphasis on addressing drug trafficking and money laundering.
In a post on X (formerly Twitter), Prime Minister Trudeau announced that Canada would deploy nearly 10,000 police officers to strengthen border security, label drug cartels as terrorist organizations, and appoint a special official to oversee efforts against the spread of fentanyl—referred to as the “Fentanyl Czar.”
President Trump also posted on X, focusing on the fentanyl issue, stating that the newly announced tariffs would be paused for 30 days.
He clarified that this delay would provide time to negotiate a final economic deal with Canada.
The agreement includes a substantial $1.3 billion investment to enhance border security, including new technology, helicopters, and additional personnel.
Trudeau emphasized that the funds would be used to reinforce the border with modern resources and increased coordination with US partners to curb the flow of fentanyl into Canada.
In the midst of these discussions, Ontario Premier Doug Ford has taken a strong stance against the US trade measures.
In response to the tariffs, Ford announced that Ontario would prohibit American companies from securing government contracts, stating that the province could no longer engage with American firms until the tariffs were lifted.
The decision includes canceling a $68 million agreement with Elon Musk’s Starlink, which was set to provide high-speed internet to remote communities in Ontario.
“Starting today, and until US tariffs are lifted, Ontario is banning American companies from provincial contracts,” Ford declared.
He also highlighted that Ontario’s government agencies spend around $30 billion annually on procurement, with an additional $200 billion allocated for infrastructure projects.
The US tariffs, which were initially scheduled to take effect on Tuesday, would have imposed a 25% duty on nearly all Canadian imports, except for oil, which would face a 10% surcharge.
In response, Canada has announced retaliatory tariffs, including a 25% levy on $155 billion worth of American goods, targeting items such as alcoholic beverages, fresh produce, clothing, and footwear.
Premier Ford framed the escalating trade dispute as an economic battle, emphasising that Canada did not initiate the conflict but would respond robustly to protect its interests.
As both nations continue their negotiations, the broader implications for businesses and consumers on both sides of the border remain significant.
