On February 3, 2025, Prime Minister Justin Trudeau announced that Canada has temporarily averted a trade war with the United States by agreeing to border security measures. Following a phone call with President Donald Trump, Canada will invest $1.3 billion to bolster border security through new helicopters, technology, and personnel aimed at combating fentanyl trafficking. This agreement came shortly after Mexico reached a similar deal to avoid U.S. import tariffs. The U.S.-Canada truce is set for 30 days, while Trump’s threat of a 10% tariff on China remains active. Meanwhile, Canada had been preparing retaliatory tariffs to counter the 25% duties threatened by Trump on various Canadian goods, including a 10% tariff on Canadian oil.
