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 the imposing tit-for-tat tariffs. Following a productive discussion with President Donald Trump, Trudeau revealed plans to move forward with significant border security measures.

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 emphasized the implementation of a $1.3 billion border plan involving the reinforcement of the border with new helicopters, advanced technology, and additional personnel. The strategy also includes improved cooperation with American counterparts and heightened efforts to curb the influx 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. 

Trump confirmed the pause with his own post on Truth Social. 

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

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

Canada responded by announcing its own levies on some American goods. 

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.’

Trump confirmed the agreement.

‘As president, it is my responsibility to ensure the safety of all Americans, and I am doing just that,’ he wrote.

Expressing satisfaction with the progress made, Trudeau stated, “I am very pleased with this initial outcome. The tariffs that were declared on Saturday will be suspended for a 30-day period to assess the possibility of finalizing an economic agreement with Canada.”

Hours earlier, Trump paused similar tariffs on Mexico when its president agreed to reinforce its border with 10,000 National Guard members as part of an effort to stem the flow of drugs. 

Trump confirmed the pause with his own post on Truth Social

Trump confirmed the pause with his own post on Truth Social

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

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.

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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