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Trump pausing Mexico tariffs – is Canada next?

Trump pausing Mexico tariffs – is Canada next?

Ontario premier says Canadian officials doing 'everything they can' to convince US to drop Canada tariffs

Trump pausing Mexico tariffs – is Canada next?

By Fergal McAlinden

03 Feb. 2025

Mexican president Claudia Sheinbaum said Donald Trump has agreed to pause 25% tariffs on her country for a month, while Canadian prime minister Justin Trudeau is scheduled to speak with the US president for the second time today at 3:00 p.m. ET.  

Sheinbaum said she had had a “good conversation” with Trump on Monday morning, resulting in a delay to the massive levies announced by the White House that were scheduled to come into effect tomorrow (February 4). 

Trump had accused Sheinbaum’s government of entering an “intolerable alliance” with Mexican crime gangs, triggering a sharp rebuke from Mexico’s president – but she said today she has reached a number of agreements with Trump including the dispatchment of 10,000 Mexican national guard members to the border to clamp down on drug trafficking.  

The news has sparked speculation that Trudeau will call for a similar delay to Trump’s tariffs on Canada, which are also set to take effect tomorrow. On Saturday, Trump announced 25% levies on all Canadian imports to the US except energy, which was charged at 10%.  

Trudeau responded with countermeasures on US products entering Canada, introducing 25% tariffs on billions of dollars’ worth of American imports to the country.  

The trade spat has roiled markets and raised fears of a recession, with National Bank of Canada arguing the crisis could call for an emergency oversized rate cut by the Bank of Canada in the weeks ahead.  

Trudeau spoke with Trump this morning, and Ontario premier Doug Ford said he hopes the US president will follow his reversal on Mexico with a similar decision on Canadian tariffs.  

“We’re their number one customer. We’re their number one export destination,” Ford said on Monday, indicating Canadian officials were doing “everything they can” to reach an agreement with the US.  

“We’re working governor to premier, premier to senator and congresspeople, and all premiers are doing it. They’re reaching out to their counterparts,” he said. “And we’re doing our job. And I know the prime minister is doing his job by contacting President Trump today and later this afternoon.  

“That decision President Trump has made is so, so misguided. He underestimates the power and the will and the fortitude of Canadians. We’re their closest trading partner and ally.”