Donald Trump delays tariffs on Canada, Mexico: What is new border deal? Explained

  • Donald Trump announced on Monday that he was delaying the tariffs on Canada by 30 days after Justin Trudeau announced measures to increase border security. Here's an explainer on what the US-Canada border deal is and how it is expected to pan out in next few days as Canada avoids tariffs

Written By Chanchal
Updated4 Feb 2025, 08:23 AM IST
Donald Trump delays tariffs after deal with Canada PM Justin Trudeau
Donald Trump delays tariffs after deal with Canada PM Justin Trudeau(AP)

United States President Donald Trump has put his tariff threat on Canada and Mexico on hold for 30 days. The 30-day tariff pause comes after Canada and Mexico agreed to bolster border security, aiming to curb illegal immigration and the flow of fentanyl into the US.

In a “good call” with Donald Trump, Canada agreed to enforce a border plan to satisfy the US, leading to a 30-day pause on Donald Trump's tariffs. Meanwhile, there is still no deal between China and the US, meaning tariffs on Beijing are set to take effect within hours

After the announcement of the border deal between Canada and the US, Donald Trump said, “Canada has agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl that have been pouring into our Country, killing hundreds of thousands of Americans, while destroying their families and communities all across our Country.”

In another post, Donald Trump declared that he was delaying the tariffs on Canada by 30 days to see how the deal takes shape in the coming days, ending the post with “fairness for all”.

“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!” Trump added in his post. Also Read | US military C-17 aircraft transports Indian migrants under Donald Trump’s immigration crackdown

What is new Canada-US border deal to avoid tariffs?

1. The border deal between Canada and US is a $1.3 billion plan

2. The plan will include strengthening the US-Canada border with new choppers, technology and personnel

3. As many as 10,000 frontline personnel are and will be working on protecting the US-Canada border

4. Canada will also be appointing a Fentanyl Czar to keep a check on the flow of the drug into the US

5. Cartels will be listed as “terrorists”

6. There will be 24/7 surveillance of the US-Canada border

7. Canada-US joint strike force will be launched to combat organized crime, fentanyl, and money laundering.

Result: Donald Trump's proposed tariffs on Canada to be paused for at least 30 days.

What happened before tariff pause: From alcohol to firearms: Canada’s tariff list takes aim at US products. Full list

What is US-Mexico deal?

1. Mexico agreed to reinforce its northern border with 10,000 National Guard members

2. The deployment of the National Guard members will stem the flow of illegal migration and drugs

2. The United States also made a commitment to prevent trafficking of high-powered weapons to Mexico.

Why did Donald Trump agree to make a deal with Canada?

While Donald Trump had threatened tariffs on Canada, he also demanded certain measures be implemented to stop the movement of immigrants.

After the US and Mexico reached a deal, some conservative politicians in Canada urged the federal government to deploy the military to the Canada-US border, CBC reported.

Canada's Conservative Leader Pierre Poilievre urged outgoing Prime Minister Justin Trudeau to address Donald Trump's concerns and “send Canadian Forces troops, helicopters and surveillance to the border now”.

(With Reuters inputs)

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Business NewsNewsUs NewsDonald Trump delays tariffs on Canada, Mexico: What is new border deal? Explained
MoreLess
First Published:4 Feb 2025, 07:19 AM IST