Update: U.S. Import Tariffs on Canadian Goods Paused for 30 Days
With the 30-day suspension in place, the focus will be on how Canada plans to fulfil its border security commitments to prevent U.S. import tariffs.
Canadian Prime Minister Justin Trudeau and U.S. President Donald Trump agreed on a last-minute deal to postpone U.S. import tariffs on Canadian goods for 30 days—as negotiations for a border deal continue.
The announcement was made hours after Mexico negotiated a similar delay.
The 30-day pause will allow the U.S. to assess whether or not a final economic agreement with Canada can be reached.
In an executive order published by the White House, Trump stated, “I have determined that the Government of Canada has taken immediate steps designed to alleviate the illegal migration and illicit drug crisis through cooperative actions.”
Following actions taken by the Canadian government, the additional U.S. import tariffs, which include a 25% ad valorem duty and a 10% duty on energy products, “shall be paused and will not take effect until March 4, 2025, at 12:01 a.m. Eastern Time."
At first, Canada prepared for retaliatory measures but ultimately chose a diplomatic approach that leveraged its existing border security initiatives.
Canada’s commitments focus on a border spending plan announced on December 17, 2024, which is valued at 1.3 billion Canadian dollars (approximately $900 million USD).
The plan is designed to strengthen the country’s border security and immigration system by combating organized crime, drug trafficking, and unauthorized immigration.
Trudeau said that Canada would continue implementing this border spending plan, which includes investing in advanced security technology such as two additional Black Hawk helicopters, 60 U.S.-made drones, and other technical equipment.
He also announced that 10,000 frontline security personnel would be stationed at key border points. However, he did not clarify how many are already in place along the 5,500-mile Canada-U.S. border.
Moreover, Canada has committed to intensified efforts to fight the opioid crisis and will establish a new position for a fentanyl czar responsible for coordinating anti-narcotic operations.
Additionally, 200 million Canadian dollars will be allocated to intelligence gathering on cartel activities, and key criminal organizations involved in drug trafficking will be formally recognized as terrorist entities.
Over the next month, U.S. officials will closely monitor the situation at the northern border to evaluate whether Canada is effectively addressing issues related to illegal migration and drug trafficking.
The Secretary of Homeland Security, in coordination with the Secretary of State, the Attorney General, and top national security advisors, will conduct ongoing assessments to determine if progress is being made.
If the situation of illegal migration or the flow of illicit drugs worsens and Canada fails to take sufficient action, the White House stated that the U.S. import tariffs will be immediately reinstated.
At Cole International, we’re closely monitoring this story and will keep you updated as it develops. To discuss the impact of this update on your business, please reach out to one of our trade professionals.