Canada's Justin Trudeau caves to Trump's tariff threat and strikes billion-dollar border agreement

Canadian Prime Minister Justin Trudeau has announced a 30-day halt on hefty tariffs and plans to move forward with significant border security measures after holding crisis talks with President Donald Trump.

He said he was deploying new technology and personnel to the border, as well as appointing a fentanyl czar.

‘I just had a good call with President Trump,’ he posted on X. 

Trudeau stated, “Canada is implementing our $1.3 billion border plan, which includes strengthening the border with new helicopters, technology, and personnel. We will also enhance coordination with our American counterparts and allocate more resources to combat the trafficking of fentanyl.”

‘Nearly 10,000 frontline personnel are and will be working on protecting the border.’

White House officials claimed victory although Canadians pointed out that Trudeau was simply restating a plan announced in December. 

It comes after Trump at the weekend announced he was preparing to slap 25 percent tariffs on imports from north of the border. 

Canada responded by announcing its own tit-for-tat levies on some American goods. 

Prime Minister Justin Trudeau on Monday announced he and President Donald Trump had reached an agreement to suspend tariffs

Prime Minister Justin Trudeau on Monday announced he and President Donald Trump had reached an agreement to suspend tariffs

Trudeau announced the 30-day pause on the social media platform X

Trudeau announced the 30-day pause on the social media platform X

But that all evaporated after the two leaders spoke by phone. 

‘This is victory,’ said a senior White House official. 

‘There were a lot of doubters out there who seemed to forget we are the world’s biggest economy.’

Previously, Trump also postponed imposing similar tariffs on Mexico after the Mexican president committed to bolstering its border security by deploying 10,000 National Guard members to help curb the influx of drugs.

Trump said he would use the one-month pause to engage in further negotiations with Mexico. 

‘I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,’ he wrote on Truth Social.

The threats had triggered fears of a global trade war, sending stock markets into steep dives.

And Canada, a longtime ally of Washington, reacted with a mix of disbelief and despair to finding itself in Trump’s crosshairs.

Fears of a global trade war sent markets plunging. The UK's FTSE 100 plunged more than 100 points in early trading on alarm about the wider impact of Trump's battles

Fears of a global trade war sent markets plunging. The UK’s FTSE 100 plunged more than 100 points in early trading on alarm about the wider impact of Trump’s battles

In a weekend address, Trudeau spoke of the betrayal that many Canadians were feeling. 

‘We were always there standing with you, grieving with you, the American people,’ he said. 

Trump has shown his intent to use the threat of tariffs to get his own way since taking office.

He used them to force Colombia to back down when it refused to allow two military flights to land with their cargo of deportees.

Trudeau on Monday became the third leader to decide that a tariff battle was not a war that he could win.

‘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-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering,’ he posted.

‘I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.’

Shortly before the call, Trump spoke with reporters in the Oval Office, where he was asked what Canada needed to do to stave off the threat. 

‘What I’d like to see … Canada become our 51st state,’ he said. 

‘We give them protection, military protection. We don’t need them to build our cars. I’d rather see Detroit or South Carolina or any one of our … Tennessee, any one of our states, build the cars,’ 

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