Discover the reason behind Canada's sudden halt on US tariffs after Trudeau's call with Trump
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In a world where international relations can often feel as tense as a high-stakes poker game, a single phone call can sometimes change the entire hand.
This was the case recently when Canadian Prime Minister Justin Trudeau and President Donald Trump came to a temporary agreement that could have a significant impact on your wallet.
On a Monday that could have marked the beginning of a costly trade war, Trudeau and Trump instead announced a 30-day halt on the imposition of 25% tariffs.
The proposed 25% tariffs on each other’s imports were put on hold, giving both nations a chance to finalize a border security pact that could ease tensions and keep prices stable for consumers.
The two leaders had two phone calls that day before the world heard of their agreement. The deal includes Canada's commitment to station 10,000 troops at the northern border and to take decisive action against the smuggling of fentanyl, a powerful and often deadly opioid.
Trump took to Truth Social to proclaim, “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.”
He expressed satisfaction with the initial outcome, emphasizing his role in ensuring the safety of all Americans.
Trudeau, on his part, confirmed Canada's dedication to a $1.3 billion border plan, which includes “reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.”
“In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada-US Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”
Also read: How Trump's tariffs could impact your wallet: What you need to know
This move comes after a similar agreement was reached between Trump and Mexico's President Claudia Sheinbaum, where Mexico also agreed to deploy 10,000 troops to the US border and work together to crack down on illegal weapons trafficking.
Trump first threatened to implement tariffs against Canada and Mexico last November if they did not give in to his demands to stop the flow of fentanyl and other precursor, and immigration, into the US.
The potential tariffs had loomed large over both economies. For Canada, where roughly 75% of its exports are US-bound, the impact of a 25% tariff could have been devastating.
Conversely, the US sends about 13% of its exports to Canada, making the northern neighbor a significant market.
Last year alone, the US imported approximately $377 billion worth of goods from Canada, while exporting $322 billion, according to the US Census Bureau.
The US relies heavily on its three largest trading partners—Canada, Mexico, and China—for about 40% of its imports, totaling roughly $1.4 trillion annually.
Had the tariffs been implemented, the Tax Foundation estimated a potential long-term reduction of 0.4 percentage points in US GDP, the loss of about 344,000 jobs, and tax increases amounting to $1.2 trillion between 2025 and 2034.
The average US household could have faced an immediate tax hike of about $830.
Source: CBC News / Youtube.
“This will be the golden age of America! Will there be some pain? Yes, maybe (and maybe not!). But we will make America great again, and it will all be worth the price that must be paid,” Trump wrote on Truth Social Sunday.
For now, the tariff truce means that consumers can breathe a sigh of relief. The prices of goods ranging from groceries to automobiles may stay stable, avoiding the spike that tariffs would have inevitably caused.
Also read: Trump drops key update: Here’s the "pain" Americans could face from tariffs
What are your thoughts on this tariff truce? Share your sentiments in the comments below, but please remember to remain respectful.
This was the case recently when Canadian Prime Minister Justin Trudeau and President Donald Trump came to a temporary agreement that could have a significant impact on your wallet.
On a Monday that could have marked the beginning of a costly trade war, Trudeau and Trump instead announced a 30-day halt on the imposition of 25% tariffs.
The proposed 25% tariffs on each other’s imports were put on hold, giving both nations a chance to finalize a border security pact that could ease tensions and keep prices stable for consumers.
The two leaders had two phone calls that day before the world heard of their agreement. The deal includes Canada's commitment to station 10,000 troops at the northern border and to take decisive action against the smuggling of fentanyl, a powerful and often deadly opioid.
Trump took to Truth Social to proclaim, “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.”
President Trump and Prime Minister Trudeau have reached a temporary agreement to suspend tariffs for 30 days as they work out a border security pact. Image source: USA TODAY / Youtube.
He expressed satisfaction with the initial outcome, emphasizing his role in ensuring the safety of all Americans.
Trudeau, on his part, confirmed Canada's dedication to a $1.3 billion border plan, which includes “reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.”
“In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada-US Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”
Also read: How Trump's tariffs could impact your wallet: What you need to know
This move comes after a similar agreement was reached between Trump and Mexico's President Claudia Sheinbaum, where Mexico also agreed to deploy 10,000 troops to the US border and work together to crack down on illegal weapons trafficking.
Trump first threatened to implement tariffs against Canada and Mexico last November if they did not give in to his demands to stop the flow of fentanyl and other precursor, and immigration, into the US.
The potential tariffs had loomed large over both economies. For Canada, where roughly 75% of its exports are US-bound, the impact of a 25% tariff could have been devastating.
Conversely, the US sends about 13% of its exports to Canada, making the northern neighbor a significant market.
Last year alone, the US imported approximately $377 billion worth of goods from Canada, while exporting $322 billion, according to the US Census Bureau.
The US relies heavily on its three largest trading partners—Canada, Mexico, and China—for about 40% of its imports, totaling roughly $1.4 trillion annually.
Had the tariffs been implemented, the Tax Foundation estimated a potential long-term reduction of 0.4 percentage points in US GDP, the loss of about 344,000 jobs, and tax increases amounting to $1.2 trillion between 2025 and 2034.
The average US household could have faced an immediate tax hike of about $830.
Source: CBC News / Youtube.
“This will be the golden age of America! Will there be some pain? Yes, maybe (and maybe not!). But we will make America great again, and it will all be worth the price that must be paid,” Trump wrote on Truth Social Sunday.
For now, the tariff truce means that consumers can breathe a sigh of relief. The prices of goods ranging from groceries to automobiles may stay stable, avoiding the spike that tariffs would have inevitably caused.
Also read: Trump drops key update: Here’s the "pain" Americans could face from tariffs
What are your thoughts on this tariff truce? Share your sentiments in the comments below, but please remember to remain respectful.
