Canadian Prime Minister Justin Trudeau announced that new tariffs on Canadian and US goods will be postponed for 30 days following a call with US President Donald Trump, Bloomberg has reported.
The move is part of efforts to address rising tensions over trade between the two countries.
In a post on social media X, Trudeau also outlined several new measures to combat organized crime, drug trafficking and money laundering. Canada will appoint a new fentanyl czar, designate cartels as terrorist organizations and establish a joint “strike force” with the US.
Trudeau further mentioned that a new intelligence directive on organized crime and fentanyl had been signed, with C$200 million in funding allocated to back the initiative.
The Canadian government will also proceed with a C$1.3 billion ($901 million) plan to increase border security, which includes the addition of helicopters, as previously announced in December.
The White House did not immediately respond to inquiries regarding the phone call or Trudeau's post, Bloomberg reported.
The announcement appears to have temporarily eased the risk of a significant trade dispute between the two nations. Economists had warned that such a conflict could harm US economic growth, exacerbate inflation, and potentially push Canada into recession.
Earlier in the weekend, Trump signed an executive order imposing 25% tariffs on most Canadian exports to the US, excluding energy products, which will face a 10% duty.
In response, Trudeau threatened a retaliation package, which included 25% tariffs on C$30 billion worth of US imports starting on Tuesday, with another C$125 billion of US goods facing similar measures in 21 days.
Several provincial governments in Canada also announced retaliatory actions. Some ordered the removal of American-made beer, wine, and liquor from store shelves, while others stated they would make it harder for US companies to access government procurement contracts.
In addition to these official measures, grassroots actions in Canada have included social media campaigns encouraging the boycott of US products and public demonstrations, such as booing the US national anthem at sports events.