Just days after President Donald Trump went on the offensive with some of the US’ key international partners over trade deficits and border security, slapping 25 per cent tariffs on products from both Mexico and Canada, the American leader appears to have got what he wanted. The extra charge on goods imported from the US’ neighbours was announced on Friday, causing widespread panic and claims of retaliatory tariffs.
But by Monday, both countries had caved to Trump’s demands in return for a 30-day pause on the impending trade war, just a day before the tariffs were due to come into effect. Following a phone call with the US President, Canadian Prime Minister Justin Trudeau said he would deploy 10,000 personnel to the border, alongside “increased resources” to stop the flow of the deadly opiate Fentanyl from his country into America.
Taking to social media to reassure citizens that the threatened tariff war had been postponed, Trudeau said: “I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.”
Roughly 75,000 Americans die from synthetic opioid overdoses each year, something Trump has campaigned on in the past but made little headway. White House officials were quick to claim victory on the issue after facing widespread criticism for sparking economic turmoil, others pointed out that much of the agreement had already been announced by Trudeau in December with little new policy to tackle the illicit trade.
However, more efforts to tackle the cartels trafficking the drug appear to be on the table. Canada’s Prime Minister continued: “Nearly 10,000 frontline personnel are and will be working on protecting the border. 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 organised crime, fentanyl and money laundering.
“I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million. Proposed tariffs will be paused for at least 30 days while we work together.”
Canada accounts for around 13 per cent of all US imports, making it one of their largest trading partners. Along with Mexico, the US’ neighbours make up almost 30 per cent of all foreign trade – both at large deficits.
Taking to his own social media platform, Truth Social, Donald Trump was quick to claim victory, but clearly pointed to the US’ trade deficit with Canada as the next item on his agenda. He said: “As president, it is my responsibility to ensure the safety of all Americans, and I am doing just that.
“I am very pleased with this initial outcome, and the tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final economic deal with Canada can be structured.”
The announcement of a pause in trade hostilities came just a day after Trump doubled down, claiming that the US trade deficit on its northern border equated to “hundreds of billions” in subsidies for Canada’s economy. Because of this, he argued that Canada should be annexed.
He said: “Without this massive subsidy, Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State”
Canada was not the only tariff target to acquiesce to US demands on Monday, with Mexico’s President Sheinbaum also agreeing to reinforce the border in the face of a 25 per cent charge on imports. But just days after Trump’s threat, Sheinbaum also agreed to send 10,000 personnel to the border to help stop the flow of illegal drugs and migrants.
In return, the US President implemented another 30-day pause and promised to stop the flow of American guns into Mexico, which have armed many of the murderous cartel groups transporting drugs across the border. This marks the third country in as many weeks to fold in the face of a massive trade war, with Colombia folding almost immediately after Trump threatened similar tariffs if they did not take back deported migrants.
A White House official is reported to have said: “There were a lot of doubters out there who seemed to forget we are the world’s biggest economy.”