Prime Minister Justin Trudeau said on Monday afternoon a deal had been reached averting US tariffs and Canadian retaliation for at least 30 days.
Trudeau said Canada had agreed to go ahead with a $1.3-billion border plan it had already drawn up, alongside fresh measures aimed at securing the Canada-US border.
“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,” Trudeau wrote online.
“I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”
He said the proposed tariffs would be “paused for at least 30 days while we work together.”
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Donald Trump, confirming the pause in a post on Truth Social, said the 30-day window was “to see whether or not a final economic deal with Canada can be structured.” Trump has also complained lately about Canadian banking rules and agricultural trade, issues that had not previously been raised.
US tariffs on Canadian goods imported into America – and Canadian retaliatory measures on tens of billions of dollars of imports from the States – had been due to kick in on Tuesday.
While the NWT has fewer direct trading connections with the US than southern provinces, the territory’s premier had warned it was “not immune” to the fallout if a trade war began.
The territory had already begun taking steps to limit procurement involving American firms and halt the purchase of US liquor and cannabis for NWT stores. Whether those actions would remain in place for now or would, like the tariffs, be paused was not immediately clear.
