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U.S. tariffs on Canada paused for 30 days

Mere hours before the U.S. was scheduled to start imposing crippling tariffs on Canadian imports, calmer heads prevailed and the policy was paused for 30 days.

In a statement posted to social media platform X late Monday (Feb. 3) afternoon, Prime Minister Justin Trudeau shared the news that in a call with U.S. President Donald Trump the decision was made to pause the proposed tariffs as Canada works on reinforcing its border.

“Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl,” he said in the post.

“In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”

According to the statement, an additional $200 million has been has been earmarked for a new intelligence directive on organized crime and fentanyl.

I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…

— Justin Trudeau (@JustinTrudeau) February 3, 2025

Trump signed a pair of executive orders on Saturday that laid out a plan to impose 25 per cent across-the-board tariffs on Mexico and 25 per cent tariffs on most Canadian goods, with a lower 10 per cent tariff on Canadian energy.

The executive orders say the levies are a response to illegal immigration and drug smuggling, and use the International Emergency Economic Powers Act to declare an economic emergency that allows Trump to bypass Congress.

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.”

Even with the pause, the threat of an all-out trade war hangs heavily over businesses dependent on the flow of goods across the border.

According to Fruit and Vegetable Growers of Canada (FVGC), the greenhouse sector is particularly vulnerable to these tariffs with approximately 80 per cent of its produce destined for the U.S.

“The tariffs not only jeopardize the livelihoods of Canadian growers but also threaten the integrity of the North American food supply chain,” the association said in a press release issued Monday, before the pause was announced.

“FVGC urges policymakers to prioritize the protection of the agricultural sector, including by putting in place new safety net and adjustment programs, ensuring that Canadian growers remain competitive and that families continue to have access to fresh, affordable produce.”

According to an update to members issued in mid-January, Flowers Canada Growers (FCG), such a tariff would be devastating to the floriculture sector.

“At this time, we see a potential 25 per cent tariff on Canadian flowers entering the US as a significant long-term threat for member farms, whether they are exporters or not,” the update states.

“It is our assessment that the only pathway forward for the sector in a 25 per cent tariff environment is for that tariff to be lifted, and we anticipate this to be true for many other sectors as well.”

In a video update, FCG executive director Andrew Morse cautions that impacts will be different based on what a products are grown and where they’re being sold.

Morse said that the FCG’s approach is to continue to advocate for member farms to have support from both provincial and federal levels of government to “bridge damage during a tariff environment,” and encouraging the empowerment of the federal government “to bring any tariff threat to a swift conclusion.”

In the meantime, the FCG encourages growers to engage with their U.S. customers to ensure they understand the consequences a 25 per cent tariff.

“We recognize the importance of client relationships and the time they take to establish, but clients in the U.S. must be made aware of the risk should a 25 per cent tariff be imposed, and they must be encouraged to voice their concern with elected leaders in the U.S.”, the FCG says in the update.

– with a file from The Canadian Press