Following a series of calls on February 3, 2025, Canadian Prime Minister Justin Trudeau and US President Donald Trump agreed to a 30-day delay on tariffs that were to be implemented on February 4, 2025. As outlined in our previous alert, President Trump made good on his promise to impose a 25% tariff on imports from Canada with a 10% tariff on Canadian energy resources. Canada responded in kind with a 25% tariff on imports from the United States.
Canada has promised a $1.3 billion border security plan, including new equipment, personnel, and increased cross-border cooperation with United States border security agencies. In exchange, both countries will pause the implementation of their planned tariffs for at least 30 days. The United States has indicated their intention to structure a 'final economic' deal with Canada during this period.
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