Trump Pauses Canada and Mexico Tariffs

Image Credit: Adobe Stock Images/Tangtong.com

After initially ordering 25% tariffs on Canada and Mexico over the weekend,¹ President Trump announced yesterday that a 30-day pause has been placed on these, per AP.²

The pause will allow time for negotiations on the immigration (via increased border security) and drug trafficking front to occur. Canada will be increasing its physical and technological presence at the US-Canada border—a component of its $1.3 billion border enhancement project.³

“ …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,” said Canadian Prime Minister Justin Trudeau on X.⁴ “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 cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada-US Joint Strike Force to combat organized crime, fentanyl, and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl, and we will be backing it with $200 million.”

Mexican President Claudia Sheinbaum also noted that she would deploy the US-Mexico border with 10,000 Mexican National Guard members.²

However, in regard to China, the 10% tax on goods went into effect today. In response, China has imposed tariffs of their own that will become active Feb. 10, including a 15% tax on coal and liquefied natural gas, along with a 10% tax on crude oil, agricultural machinery, large-displacement cars, and pickup trucks.⁵ Reuters is reporting that the Trump is expected to meet with Chinese President Xi Jinping on the matter today.⁶

Trump is yet to impose tariffs on pharmaceuticals, but according to some executives, preparing for the possibility of them could be a proactive approach.

“I think you are definitely going to see biotech and clinical research organizations wanting to protect themselves from tariffs by moving some operations and sourcing within the US,” noted Shaun Jensen, founder and CEO of JB Consulting Group.

Stay tuned to Pharmaceutical Commerce for the latest developments surrounding these tariffs.

References

1. Saraceno N. Trump Imposes Trade Tariffs on Canada, Mexico, and China. Pharmaceutical Commerce. February 4, 2025. Accessed February 4, 2025. https://www.pharmaceuticalcommerce.com/view/trump-trade-tariffs-on-canada-mexico-china

2. Boak J, Sánchez F, Gillies R. Trump agrees to pause tariffs on Canada and Mexico after they pledge to boost border enforcement. AP. February 3, 2025. Accessed February 4, 2025. https://apnews.com/article/trump-tariffs-canada-mexico-china-sheinbaum-trudeau-017efa8c3343b8d2a9444f7e65356ae9

3. Government of Canada announces its plan to strengthen border security and our immigration system. Public Safety Canada. December 17, 2024. Accessed February 4, 2025. https://www.canada.ca/en/public-safety-canada/news/2024/12/government-of-canada-announces-its-plan-to-strengthen-border-security-and-our-immigration-system.html

4. Trudeau J. Post regarding $1.3 billion border plan. X. February 3, 2025. Accessed February 4, 2025. https://x.com/JustinTrudeau/status/1886529228193022429

5. Announcement of the State Council Tariff Commission on imposing additional tariffs on some imported goods originating from the United States. Ministry of Finance of the People’s Republic of China.February 4, 2025. Accessed February 4, 2025. https://www.mof.gov.cn/zhengwuxinxi/caizhengxinwen/202502/t20250204_3955222.htm

6. Lawder D, Shalal A. Trump to speak with China's Xi on Tuesday, trade adviser Navarro says. Reuters. February 4, 2025. Accessed February 4, 2025. https://www.reuters.com/world/trump-speak-with-chinas-xi-tuesday-trade-adviser-navarro-says-2025-02-04/