U.S. President Donald Trump has paused planned 25 percent tariffs on Canadian goods, barring a 10 percent carveout for energy, following a conversation with Canada Prime Minister Justin Trudeau.
Trump announced on his Truth Social social media platform that Canada has “agreed to ensure we have a secure Northern Border” as part of a CAD 1.3 billion (USD EUR ) border plan. The move came just hours after he also balked at applying 25 percent tariffs to Mexico for a month, based on similar promises that the country would increase security at its border with the U.S.
“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,” Trump wrote.
The U.S. is currently operating under the United States-Mexico-Canada Agreement (USMCA), a trade deal that replaced the North American Free Trade Agreement in 2018. The USMCA was negotiated by and agreed to by Trump in his first term.
Canada’s border plan was also previously announced in December 2024, before Trump was inaugurated.
While the U.S. has paused its tariffs on Canada and Mexico, Trump has not mentioned the 10 percent tariff that he is planning to place on China and Hong Kong, that will add to existing tariffs. The additional tariffs have very narrow exceptions, none of which include exceptions for seafood aside from food donated to alleviate human suffering.
As the tariffs began to take effect, the New York Times reported China has begun retaliating against the U.S. with tariffs on U.S. coal, gas, farm machinery, and large displacement cars and pickup trucks. It also implemented export restrictions on minerals used by high-tech industries...