With Mexico buying itself reprieve from Trump’s tariffs, all eyes are on the outcome of Canada’s dialogue with the US.
The United States has postponed imposing tariffs on Mexico for one month following discussions between President Donald Trump and Mexican President Claudia Sheinbaum Monday morning.
Trump confirmed the decision after a “great talk” with Sheinbaum, highlighting Mexico’s commitment to permanently deploying 10,000 troops along its southern border to curb illegal migration and drug trafficking.
While the delay provides temporary relief, Trump made it clear that tariffs are still a possibility.
“Tariffs are not totally off the table,” he told reporters at the White House, signaling that future economic penalties could be reinstated if Mexico fails to meet US expectations on border control.
Sheinbaum, speaking at a press conference in Mexico City, described the agreement as “very respectful,” emphasizing a relationship of “respect and equals” between the two nations.
Canada heads into high-stakes talks with Trump
Unlike Mexico, Canada has yet to secure a compromise with the US.
Prime Minister Justin Trudeau spoke to Trump on Monday morning but failed to reach an agreement ahead of the scheduled tariff implementation on Tuesday.
A second phone call is expected between the two leaders at 3 p.m. Eastern, though Canadian officials remain pessimistic about the chances of a deal, according to The New York Times.
The impending tariffs—set at 25% on Canadian exports—have triggered swift retaliation from Canada.
Ottawa announced countermeasures totaling 155 billion Canadian dollars ($106 billion) on American goods, prompting calls from political leaders for Canadians to prioritize domestic products.
“Now is the time to choose products made right here in Canada,” Trudeau posted on X. “Check the labels. Let’s do our part. Wherever we can, choose Canada.”
On social media, patriotic campaigns urging consumers to support Canadian industries have gained traction, with videos providing shopping guidelines accompanied by dramatic music.
Ontario has also canceled a major government contract with Starlink, the satellite internet service owned by Elon Musk.
The contract, worth 100 million Canadian dollars ($68 million), was seen as a symbolic move against US companies benefiting from Canadian investments while the country faces trade penalties.
Why Canada’s response is difficult to predict?
President Trump’s top economic adviser, Kevin Hassett, dismissed Canada’s retaliation, arguing that the tariffs were not about trade but rather border security and the fight against illegal drugs.
“The good news is that in our conversations over the weekend, one of the things we’ve noticed is that Mexicans are very, very serious about doing what President Trump said,” Kevin Hassett, the director of the White House’s National Economic Council, said on CNBC.
“Canadians appear to have misunderstood the plain language of the executive order and they’re interpreting it as a trade war,” Hassett added.
At the same time, Canada’s opposition leader Pierre Poilievre has called for the deployment of 2,000 troops along the US border and significant investments in surveillance technology.
He argued that such measures could help Canada negotiate a reprieve from the tariffs.
A White House official told Politico that the US tariffs are primarily about border security rather than trade disputes.
However, Trump’s recent statements suggest economic concerns are also at play.
“Canada doesn’t even allow US banks to open or do business there. What’s that all about?” Trump posted on Truth Social Monday morning.
“Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the US from drugs pouring through the Borders of Mexico and Canada.”
Sources familiar with the negotiations say Trump sees Canada as a more complicated case than Mexico, as he wants additional concessions beyond border security.
“Canada is more complicated because he wants concessions on other issues—separate from border and fentanyl. He has made that clear,” said one person familiar with the discussions, according to Politico.
Canada’s role in the fentanyl crisis
The White House has linked the Canadian tariffs to concerns over fentanyl production, arguing that the country has shifted from being a transit hub to a significant producer.
US officials claim that Mexican cartels have expanded their operations in Canada, establishing fentanyl and nitazene synthesis labs within its borders.
Canadian authorities have acknowledged the rise in domestic fentanyl production and the growing black market for synthetic opioids.
However, they argue that trade restrictions will do little to address the drug crisis and instead risk damaging economic ties between the two nations.
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