Canada-U.S. Trade Update: February 03, 2025

This afternoon, Prime Minister Trudeau held a phone call with U.S. President Trump and reached an agreement to pause all proposed tariffs on Canadian goods for a minimum of 30 days.

As part of the agreement, our government will implement our $1.3 billion border plan, which will reinforce our southern border with new helicopters, technology, and personnel, enhance coordination with our American partners, and increase resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.

In addition, Canada is making new commitments to appoint a Fentanyl Czar. We will list drug 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. Our government has also signed a new intelligence directive on organized crime and fentanyl, and we will be backing it with $200 million.

However, in the event that the U.S. chooses to impose their proposed tariffs on Canadian goods following the 30-day pause, Canada is prepared to retaliate through a robust and comprehensive tariff package of our own.

Our government remains ready to impose 25 per cent tariffs on $155 billion worth of American goods through targeted measures that would most impact Americans and least impact Canadians.

This plan would see immediate tariffs imposed on $30 billion worth of U.S goods, with the additional tariffs on $125 billion of American goods being implemented 19 days later to allow Canadian companies and supply chains sufficient time to respond.

In the meantime, our government will continue our work to reduce barriers to free trade across Canada.

In my role as Minister of Transport and Internal Trade, I am working to eliminate barriers to interprovincial trade to bolster our national and provincial economies. Our Committee on Internal Trade is meeting regularly with our provincial and territorial counterparts to discuss bold, transformative actions to eliminate regulatory barriers to internal trade, encourage free movement of labour and further standardize regulations across Canada.

During our meeting on January 31, discussions focused on further eliminating barriers in our internal market by working together in the following areas: 

• Adoption of mutual recognition for goods and services across Canada so that a good or service sold in one jurisdiction can be sold in another, without the need to satisfy additional requirements.

• Improved labour mobility so a registered worker can work in any location across the country without delay.

• Improving the Canadian Free Trade Agreement by reducing exceptions and addressing other sectoral priorities.

I know the recent uncertainty surrounding our trade agreement with the U.S. has been worrying for many of us Canadians, which is why we need to continue to stand strong as a community and come together as a nation. It is a time to be united, focus on the economy, and for each of us to do our part in this fight. 

That is why I am asking you to choose Canada. Buy Canadian, support Canadian businesses, Canadian farmers, and Canadian producers. Fly the maple leaf high and wear your red and white proudly.

In the coming days and weeks you can expect to hear from me regularly with updates. In the meantime, I would welcome your feedback. If you haven't already reached out, please do not hesitate to email or call my office. Your input is important to me and helps me do this work on your behalf.