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Trudeau convinces Trump to halt tariffs on Canada
By Melita KielyFollowing 11th-hour calls, US president Donald Trump has agreed to delay introducing 25% tariffs on Canada for 30 days.

President Trump announced the 25% tariffs on Canadian goods – which would have included Canadian whisky – on 1 February.
On 2 February, Canadian president Trudeau announced retaliatory tariffs worth CA$155 billion (US$106.6bn) on the US, which included American whiskey, to begin on 4 February.
Following calls between Trump and Trudeau, the US president has agreed to hold off imposing the 25% tariffs on Canada until 4 March.
Canadian prime minister Justin Trudeau has agreed to reinforce his country’s border with the US to tackle migration and clamp down on the drug fentanyl from entering the US.
Trudeau posted on X (formerly Twitter): “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.”
However, a statement published on the White House website warned: “If the illegal migration and illicit drug crises worsen, and if the government of Canada fails to take sufficient steps to alleviate these crises, the president shall take necessary steps to address the situation, including by immediate implementation of the tariffs described in the Executive Order of February 1, 2025.”
Trump also delays Mexican tariffs
The delay followed the US president’s deal with Mexican president Claudia Sheinbaum, who agreed to reinforce the northern border with troops, in exchange for the US’s cooperation to limit the flow of guns into Mexico.
A 25% tariff on Mexico would have hit the Tequila and mezcal categories, whose biggest export market is the US.
Eric Gregory, president of the Kentucky Distillers’ Association, commented: “Kentucky Bourbon creates thousands of jobs, spurs economic development, and brings America’s only native spirit to shelves across the globe.
“We commend president Trump, president Sheinbaum of Mexico and Canadian prime minister Trudeau for working on a resolution and suspending tariffs for 30 days. We look forward to permanent agreements that will enable Kentucky Bourbon to be enjoyed internationally.”
Tensions had been escalating between Canada and the US in anticipation of Trump’s planned tariffs. American spirits were being pulled from stores in Ontario, British Columbia and Nova Scotia following Trump’s announcement.
The week prior, Ontario premier Doug Ford threatened to “clear off every bit of US alcohol off the shelves” if Trump’s tariffs went ahead. The government-run Liquor Control Board of Ontario controls liquor stores across the province.
When Trump was last in power, he put tariffs on steel and aluminium from the EU, which resulted in retaliatory tariffs on American whiskey. This spiralled further, leading to tariffs on Scotch whisky and other exports.
In December 2023, the EU postponed its 25% tariff on American whiskey until 31 March 2025. If a new agreement is not reached before then, the tariff will be doubled to 50%.
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