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US and Canada agree to 30-day pause on tariffs

US and Canada agree to 30-day pause on tariffs

Source: Manufacturing Dive 
Date: 3rd February 2025

The two countries will push back a Feb. 4 enforcement date as they coordinate anti-drug trafficking efforts at their shared border.

The U.S. and Canada will delay the enforcement of tariffs the two countries issued against each other by one month, the U.S. President and Canadian Prime Minister announced on 3rd February 2025.

After what the Canadian Prime Minister called “a good call with the U.S. President,” the Canadian leader said in a post on social media platform X that the country will coordinate with the U.S. to reinforce their shared border to target the flow of fentanyl. The U.S. President issued a similar announcement on the social media platform Truth Social.

Canada is deploying nearly 10,000 frontline personnel to strengthen border security as part of a $1.3 billion plan, per the Canadian Prime Minister. The country will also appoint a “Fentanyl Czar” and launch a joint strike force with the U.S. to fight organized crime, drug trafficking and money laundering. The Canadian Prime Minister also said he would sign a new intelligence directive related to combating organized crime and fentanyl distribution and back it with $200 million.

As a result of the agreements, the Canadian Prime Minister said that both the U.S. and Canada will pause the enforcement of tariffs the two countries planned to enact Tuesday for at least 30 days.

The pause mirrors a similar action taken by the U.S. with respect to tariffs the U.S. President ordered on Mexico over the weekend. Mexico’s President said the two countries came to a series of agreements related to protecting their shared border and preventing drug and arms trafficking, delaying the tariffs until March.

“Our teams will begin working today on two fronts: security and trade,” Mexico’s President said in Spanish in a post on social media platform X.