Trump folds again
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Trump has now agreed to also pause the tariffs on Canada in exchange for some security theater that was mostly going to be done anyway:
Canada has agreed to deploy its $1.3-billion border enhancement plan, along with thousands of frontline personnel to strengthen security on the U.S. boundary in exchange for the White House pausing promised 25-per-cent tariffs for 30 days.
“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 10,000 frontline personnel are and will be working on protecting the border,” he wrote.
Trudeau added that Canada will also be making new commitments to appoint a “fentanyl czar,” to list drug cartels as terrorists and to launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering — promises he said will cost $200 million.
“Proposed tariffs will be paused for at least 30 days while we work together,” Trudeau added.
Trump announced over the weekend he would be imposing 25-per-cent tariffs on Canada and Mexico as of Tuesday. On Monday, Mexico and the U.S. were able to secure a deal delaying the imposition of tariffs for at least a month in exchange for 10,000 Mexican soldiers at the U.S.-Mexico border to address Trump’s concerns over the flow of migrants and the deadly drug fentanyl into the U.S.
Once the FENTANYL CZAR has been promised you can declare victory and go home. (Which to be clear is much better than the alternative.)
The key takeaway here is that Sheinbaum and Trudeau didn’t preemptively capitulate. Trump isn’t omnipotent, and in particular does not like negative signals from the markets.
So Trump hurt America's relationship with Canada and made markets wobble all to "get" Canada to do things Canada had announced back in December in coordination with the Biden administration, do I have that right?— Nicholas Grossman (@nicholasgrossman.bsky.social) February 3, 2025 at 2:20 PM