Justin Trudeau says American tariffs on Canada will be paused for 30 days following a “good call” with Donald Trump. The US was due to start enforcing 25% tariffs on Canada from Tuesday.
Monday 3 February 2025 22:25, UK
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Canada might have dealt its way out of US tariffs, but they’re “not out of the woods yet”, says international correspondent Diana Magnay in Windsor, Ontario.
Justin Trudeau announced this evening that the 25% tariffs due to come into place from tomorrow would be paused for 30 days.
That’s thanks to a deal struck with Washington that will see Canada strengthen security at its US border and provide promises to tackle the movement of the drug fentanyl over it.
“What a way to deal with your closest allies on your north and southern borders,” says Magnay.
“By pushing them to the brink of economic warfare, and then just at the last moment, to step back and say we’ve got a deal.”
But Magnay says Canada and Mexico aren’t free from the issue just yet, given that tariff pauses last for just 30 days.
Donald Trump has provided his reaction after the US agreed to pause tariffs on Canada for 30 days in return for security promises at its border.
Justin Trudeau says Canada will increase resources to stop the flow of fentanyl heading into the US and instruct 10,000 soldiers to work on “protecting the border”.
“As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that,” Trump posted on Truth Social.
“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. FAIRNESS FOR ALL!”
Justin Trudeau says American tariffs on Canada will be paused for 30 days following a “good call” with Donald Trump.
The US was due to start enforcing 25% tariffs on Canada from tomorrow.
In a post on X, Trudeau says the tariffs “will be paused for at least 30 days while we work together”.
The Canadian PM says he will instruct 10,000 soldiers to work on “protecting the border” as part of the agreement with Trump.
He also says he will increase resources to stop the flow of fentanyl heading into the US from Canada.
A new US-Canada joint strike force is also being established to combat “organised crime, fentanyl and money laundering”, Trudeau adds.
Canada is preparing for a recession and hundreds of thousands of job losses if US tariffs come into force tomorrow, says international correspondent Diana Magnay.
She says the next few years in Canada will be “really very bleak” if Donald Trump insists on keeping the 25% tariffs in place.
Mexico has already managed to agree a 30-day delay to the tariffs it was facing thanks to a symbiotic deal between the two countries.
Trump has promised to help stop the trafficking of high-powered weapons flowing into Mexico, whilst Mexican President Claudia Sheinbaum has committed to sending 10,000 soldiers to the US border to help stop the movement of fentanyl.
But can Canada offer Trump anything he wants to get out of US tariffs?
“The general consensus is Canada is baffled by this assault by their next door neighbour and not really sure what to give Trump,” Magnay tells The World with Yalda Hakim.
“He said in a tweet that Canada doesn’t even allow US banks to open or do business there. That’s patently not the case.
“I’ve just googled what American banks are open in Canada and there are plenty.”
A major part of tariffs is also to stop the flow of fentanyl, but Canadian Prime Minister Justin Trudeau has pointed out that miniscule amounts of the drug enter the US from Canada.
“He’s said this is ridiculous,” adds Magnay. “There’s so little fentanyl going across that border.”
We’re just receiving these latest pictures showing Donald Trump after finishing his call with Canadian Prime Minister Justin Trudeau.
The US president has been meeting the Florida Panthers hockey team at the White House after they won the Stanley Cup.
The meeting comes after Trump shared a call with Trudeau earlier this evening (see our 8.10pm post) to discuss trade tariffs.
There are also plans for him to call Chinese President Xi Jinping in the next 24 hours.
Canadian province Ontario is banning US companies from contracts until US tariffs are removed.
In a post on X, premier Doug Ford said US-based businesses “only have Trump to blame”.
Ford also explained Elon Musk’s Starlink will be among those to have their contracts “ripped up”.
“We’re going one step further,” he said. “We’ll be ripping up the province’s contract with Starlink.
“Ontario won’t do business with people hellbent on destroying our economy.
“Canada didn’t start this fight with the US, but you better believe we’re ready to win it.”
The European Union’s foreign policy chief has warned there will be no winners in a trade war between the US and the EU.
Kaja Kallas said China would be “laughing on the side” if one was to erupt.
“We are very interlinked, we need America, and America needs us as well,” she added.
Her comments come after Trump said last night that new tariffs on the EU will “definitely happen” (see our 6.47am post).
Throughout the evening, we’ve been bringing you updates as crowds gather outside the headquarters of the US Agency for International Development (USAID).
Our US correspondent James Matthews is outside the building and told our lead politics presenter Sophy Ridge employees were told by email not to turn up to work today.
“This place is going to be shut down, according to Elon Musk, who of course is in charge of DOGE (department of government efficiency) and is the unelected political ally of Donald Trump,” Matthews says.
“This is his brief and his way of cutting back on layers of bureaucracy, as he would have it.”
Trump’s freeze on foreign assistance has already shut down several of USAID’s worldwide aid programmes, including an HIV-AIDS scheme started by George W Bush.
Other programmes that would be shut down provided education to schoolgirls in Afghanistan under Taliban rule.
“This is the first kind of gathering of its sort that I’ve seen, I suppose it’s a frontline of sorts in the fight against radical revolution scenery change,” Matthews adds.
“We’ll see how this evolves and how this develops alongside government policy. I suspect that all of this might end up in the courts, and that will be a challenge, a test of the strength of the courts to deal with.”
Donald Trump’s call with Justin Trudeau is now underway, according to White House press secretary Karoline Leavitt.
The US president has imposed 25% tariffs on imports from Canada, beginning tomorrow.
In response, Canada’s prime minister says his country will impose 25% tariffs on $155bn Canadian dollars (£85.9bn) of US goods.
The two leaders have already spoken about tariffs before this evening’s call.
Leavitt adds there are plans for Trump to speak with Chinese President Xi Jinping in the next 24 hours.
As we reported earlier, crowds have been gathering outside the Washington headquarters of the US Agency for International Development (USAID).
It comes as staff members have been told to stay away after Elon Musk announced Donald Trump had agreed to shut the agency.
Flowers have been laid outside the headquarters, with some bouquets carrying tags reading: “Today it’s us at USAID, tomorrow it’s you.”
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