New Canada-US Tariffs Paused for 30 Days
Canadian Prime Minister Justin Trudeau has announced a 30-day pause on new tariffs affecting goods between Canada and the US.
The decision follows a phone call between Trudeau and President Donald Trump. Canada has agreed to appoint a fentanyl czar, designate cartels as terrorist organizations, and collaborate with the US to combat organized crime, drug trafficking, and money laundering.
Additionally, Canada will invest $200 million in an organized crime and fentanyl intelligence directive. The government will also proceed with its previously announced C$1.3 billion plan to enhance border security resources.
The news has eased tensions between the two countries and prevented a full-blown trade war. The Canadian dollar has strengthened significantly against the US dollar.
Trudeau pledged retaliation after Trump imposed tariffs on Canadian exports to the US earlier this month. Canadian provinces had also announced reciprocal measures, including boycotts of US goods and restrictions on US companies.
With these measures now paused, both nations have the opportunity to engage in further negotiations and avoid the negative economic impacts of a trade war.