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Tensions were running high over the weekend as Canada and the United States imposed heavy tariffs on each other. But they might already be cooling down.
Prime Minister Justin Trudeau took to X on Monday to announce that he had a “good call” with U.S. President Donald Trump, revealing a major $1.3 billion border security plan.
“Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl,” the Prime Minister revealed.
He also announced that Canada will appoint a Fentanyl Czar, list cartels as terrorists, ensure 24/7 border surveillance, and launch a Canada-U.S. Joint Strike Force to help combat organized crime, fentanyl, and money laundering.
“In addition, I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million,” Trudeau added.
The biggest takeaway? Proposed tariffs will be paused for at least 30 days while both nations work together. Over the weekend, Trump officially imposed a 25% tariff on nearly all Canadian goods and a 10% tariff on Canadian energy products, putting pressure on Canada’s economy. In response, Trudeau announced Canada’s counter-tariffs on $155 billion worth of American products.
Premiers from multiple provinces were quick to respond as well, with Quebec removing all American liquor from SAQ shelves after Ontario’s LCBO did the same.
But with negotiations now in play, Ontario Premier Doug Ford has already scaled back on some of his threats, announcing the province will pause their retaliatory measures.
“Canada and the U.S. need to remain united and focused on the real trade war we’re fighting, with China. If we want to win, we need to fight together – not each other,” Ford wrote.
So, will the tariffs be scrapped entirely, or is this just a temporary truce? Only time will tell.
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