WASHINGTON — The potential impacts of tariffs on the North American economy, and its rail industry, have been deferred after the Trump administration and the governments of Canada and Mexico agreed to postpone tariffs that would have taken effect Tuesday, Feb. 4.
Canadian Prime Minister Justin Trudeau wrote in a post on X.com that his country had agreed to put 10,000 “frontline personnel” at the border, appoint a “Fentanyl czar,” and launch a joint Canada-U.S. strike force “to combat organized crime, fentanyl and money laundering.” Canada will support that effort with $200 million in funding. In return, proposed U.S. tariffs of 25% on Canadian goods, and retaliatory tariffs by Canada, will be paused “for at least 30 days while we work together,” Trudeau wrote.
Trudeau’s post also mentions a $1.3 billion plan to bolster border security, including helicopters, technology, and personnel, that Canada had announced in December.
Earlier, Mexican President Claudia Sheinbaum announced in a post on X.com that said her country would send 10,000 national guard troops to the border with the U.S. to address drug trafficking, especially of fentanyl, while the U.S. will work to prevent trafficking of weapons into Mexico, leading to a pause of tariffs for a month. The two nations will begin working on “security and commerce,” Sheinbaum wrote.
The New York Times reports President Donald Trump told reporters Mexico’s troop deployment at the border would be permanent, and that tariffs still remained a possibility.
A 10% tariff on goods from China is still scheduled to take effect on Tuesday. A White House spokeswoman said Trump is slated to talk with Chinese Xi Jinping later this week.
