U.S. agrees to delay Mexican tariffs; Trump and Trudeau to speak Monday afternoon

“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” Trump said.

Trump also spoke with Prime Minister Justin Trudeau Monday morning and the two leaders are planning a second call later in the day. The Prime Minister’s Office provided no details about the first call.

Trudeau said on Saturday that he had been trying to speak directly with Trump since he took over the White House on Jan. 20 but hadn’t been able to do so.

Trump relied upon the International Emergency Economic Powers Act to declare an economic emergency that allowed him to bypass Congress and impose the tariffs on his own.

The executive orders say the levies are a response to illegal immigration and drug smuggling. The order related to Canada says Mexican cartels are operating in the country and claims the modest amount of fentanyl intercepted at the northern border would be enough to kill “9.5 million Americans.”

Trump also has said repeatedly he thinks tariffs are “beautiful” and claims they can make the U.S. wealthier, despite the short-term pain for businesses and consumers.

The move sparked concern and condemnation from American business and labour groups, including the National Association of Homebuilders, the United Steelworkers International and the U.S. Chamber of Commerce, among others.

“The imposition of tariffs under IEEPA is unprecedented, won’t solve these problems, and will only raise prices for American families and upend supply chains,” John Murphy, the chamber’s senior vice-president and head of international, said in a Saturday statement.

Both Canada and Mexico promised to strike back with counter-tariffs over the weekend.

Ottawa’s counter-tariff plan would begin on Tuesday with 25 per cent tariffs on $30 billion in goods originating in the U.S.

In three weeks, after consulting with industry, the federal government plans to impose tariffs on another $125 billion in U.S. goods.

Trudeau said additional non-tariff measures are being discussed by the federal and provincial governments, including some related to critical minerals, energy and procurement.

It is not clear what, if anything, Canada could promise to do on its border to convince Trump to reverse course.

Ottawa laid out a $1.3-billion border plan in December that will add personnel, helicopters, drones, drug-sniffing dogs and surveillance towers to the border.

Green Party Leader Elizabeth May said in a statement Monday morning that Trudeau met with opposition leaders to discuss his government’s response to the tariff threat.

“The prime minister shared that it had become increasingly clear that there was no evidence or further actions on border security that would make any difference. Trump would only double down. It was not really about fentanyl. It was about Canada and our sovereignty,” she said.

Premiers have laid out plans for their own countermeasures. Several provinces have pledged to stop buying U.S. alcohol and to remove it from the shelves of provincial liquor stores.

Ontario Premier Doug Ford, who is in the midst of an election campaign, announced that he will bar American companies from provincial contracts as long as the tariffs are in place.

He also said he ripped up a $100-million deal with SpaceX’s Starlink to bring internet to rural and northern communities. The company is owned by Trump donor Elon Musk; the president has tapped Musk to lead a government efficiency agency.

“I’m not going to support someone that is hell-bent on destroying our province, destroying people’s families, taking jobs away from them,” Ford said at a campaign announcement on Monday.

Saskatchewan Premier Scott Moe on Monday called for Canada to send troops to the border to stop illicit drugs from crossing into the U.S.

He said securing a delay in the tariffs would allow Canadian leaders to make a case to stop them altogether.

In a press conference, Moe also repeated his proposal to make the Canada Border Services Agency a part of the military and said he’s asked Public Safety Minister Dominic LeBlanc to consider whether that’s possible.

Such a move likely would require changes to federal laws, and Parliament is prorogued until late March while the Liberals choose a new leader to replace Trudeau.

Conservative Leader Pierre Poilievre also called for the government to send Canadian Armed Forces troops and helicopters to the border.

In a social media post, Poilievre said Canada should also add thousands of border agents and “extend CBSA powers along the entire border, not just crossings.”

— With files from Allison Jones and Liam Casey in Toronto, Jeremy Simes in Regina and The Associated Press

This report by The Canadian Press was first published Feb. 3, 2025.

by Canadian Press

U.S. agrees to delay Mexican tariffs; Trump and Trudeau to speak Monday afternoon

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