US postpones tariffs on Canada in return for increased border security
The US has delayed imposing import tariffs on Canadian products for at least 30 days, Canadian prime minister Justin Trudeau announced after a phone call with US president Donald Trump. In return, Canada will increase border surveillance and step up the fight against the illegal trade in fentanyl.
“Canada is implementing our 1.3 billion dollar 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,” Trudeau said on Monday night. Nearly 10,000 staff will work on protecting the border.
A “fentanyl czar” will be appointed, drug cartels will be labelled terrorists and a joint strike force will be set up with the US to fight organised crime, fentanyl and money laundering.
Following the announcement, the Canadian province of Ontario reversed its decision to terminate the contract with Starlink, the satellite company of US billionaire and Trump ally Elon Musk. US companies are now no longer excluded from contracts with the province.
Trump said on his platform Truth Social he was “very pleased” with the outcome.
Elsewhere, tariffs on products from Mexico were suspended for a month, after president Claudia Sheinbaum made similar pledges.
Chinese retaliation
China is imposing import tariffs of 15 per cent on US coal and liquefied natural gas and 10 per cent on crude oil and other goods such as agricultural machinery, it announced on Tuesday.
Beijing is retaliating to Trump’s threats to add another 10 per cent on top of existing import tariffs on China. Those levies take effect on Tuesday, the Chinese countermeasures on 10 February.
China's market regulation agency is also investigating US technology giant Google for suspected violations of anti-monopoly laws.
Meanwhile, international nervousness over trade sanctions weighed on the Brussels stock exchange on Monday, as the Bel20 index slipped 1.21 per cent to 4,273.75 points.
Of the 20 stocks that count towards the calculation of the index, 17 ended in the red. Among the worst hit was Lotus Bakeries, which will publish its 2024 results this week. The biscuit manufacturer lost 2.33 per cent to end the day on 10,060.00 euros.
A lorry waits to enter the US at a border crossing in Blackpool, Canada, 2 February 2025 © PHOTO ANDREJ IVANOV / AFP
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