Canada's Justin Trudeau caves to Trump's tariff threat and strikes billion-dollar border agreement
SUMMARY
Justin Trudeau gave in to President Donald Trump’s tariff threat, agreeing to pause retaliatory tariffs for 30 days while both countries negotiate. Following a tense phone call on February 3, 2025, Trudeau committed to reinforcing Canada’s border security with a $1.3 billion plan, including new technology, personnel, and a focus on curbing fentanyl trafficking. While the White House hailed the deal as a victory, some critics pointed out that Trudeau was simply restating measures already announced in December. This came after Trump threatened to impose 25% tariffs on Canadian imports, prompting Canada to retaliate with its own levies. Trump also paused tariffs on Mexico, following an agreement for Mexico to send 10,000 National Guard troops to secure its border. Despite expressing disappointment, Trudeau faced pressure to avoid a full-scale trade war, marking the third time a leader backed down in a tariff dispute with Trump.
