Following a phone conversation Tuesday afternoon, Prime Minister Justin Trudeau announced that U.S. President Donald Trump is pausing threatened 25 per cent tariffs on most Canadian goods. Trudeau says they discussed the $1.3 billion border plan, which includes helicopter patrols, and announced $200 million in new initiatives to address fentanyl trafficking.
These new initiatives include a joint Canada-U.S. organized crime task force, Canada listing drug cartels as terrorist entities, and the appointment of a "fentanyl czar."
Here's the latest (all times eastern):
5:05 p.m.
Quebec Premier Fran莽ois Legault welcomes the "good news" but laments that "uncertainty remains."
Legault says "what's annoying" about dealing with Trump "is that there's always this sword hanging over our heads."
Legault adds the events of the past few days emphasize the importance of diversifying markets and limiting Canadian dependence on American exports.
American products will be back on the shelves of Quebec liquor stores.
4:57 p.m.
Trump says that he is "very pleased" with the initial outcome of his tariff threat following his phone conversation this afternoon with Trudeau, and the potential levy will be paused for 30 days.
In a post on his own social media platform Truth Social, Trump copy and pastes Trudeau's earlier statement summarizing Canada's efforts on the border and fentanyl.
Trumps says that over the next 30 days, the two countries will see whether a "final Economic deal" can be reached.
The president's statement does not include any comment about wanting to make Canada the 51st state, a sentiment he shared in the Oval Office earlier today.
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4:48 p.m.
Ontario Premier Doug Ford says that American alcohol products will not be removed from LCBO shelves, now that the tariff threat has been paused for 30 days.
The premier says that if tariffs are imposed, he will not hesitate to launch retaliatory action, including prohibiting American companies from provincial procurement contracts and taking the booze back off the shelves.
The provincial government has also paused plans to cancel a $100 million contract with Elon Musk's Starlink to improve rural broadband. Ford said earlier today he wouldn't work with people who "destroy" Canadian families, incomes and businesses.
4:36 p.m.
Trudeau says the tariff threat has been paused for 30 days while Canada and the U.S. work together.
Trudeau says that he had a "good call" with Trump and talked about implementing a $1.3 billion border plan that includes helicopter patrols.
The prime minister adds that Canada is making new commitments to appoint a "fentanyl czar," list cartels as terrorist entities, launch a Canada-U.S. joint strike force to combat organized crime, and ensure "24/7" eyes on the border.
Trudeau says these new commitments will be backed with $200 million.
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4:20 p.m.
Manitoba Liquor and Lotteries says the American liquor pulled from its shelves will be put in storage.
It also says customers are welcome to return American products under standard return conditions.
The Crown corporation is pulling American-made products, but not American brands such as Budweiser and Miller Genuine Draft which are bottled in Canada.
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4:00 p.m.
Trump holds an event in the White House to congratulate the Florida Panthers on winning the Stanley Cup last year over the Edmonton Oilers.
The whole team and staff dress in outfits similar to Trump's: blue suits, white shirts and red ties. Trump calls the move "cute."
There are 13 Canadians on the Panthers Stanley Cup team.
Trumps asks the team if they've ever heard of famed hockey player Wayne Gretzky. The president has said previously that Gretzky would make a great "governor" for Canada.
3:35 p.m.
NDP Leader Jagmeet Singh says Trump has made it clear the tariff threat isn't about the border or trade deficits, but instead about making Canada a state.
In a comment posted to X, Singh says Canada "will not surrender our water, our health care, our values to Donald Trump."
Earlier this afternoon, Trump said he wants to see Canada become the 51st state and that would "100 per cent" happen if people "play the game right."
Trump and Trudeau are speaking on the phone this hour.
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3 p.m.
Cereals Canada says looming U.S. tariffs will sever cross-border supply chains and damage the long-standing relationship between the two countries.
It says the U.S. is Canada's sixth largest market for non-durum wheat, fourth for durum wheat, second for barley and first for oats.
Dean Dias, the group's CEO, says the tariffs will drastically reduce the availability of grains across North America and increase the cost of food.
He says the U.S. depends on Canada for more than half of its durum wheat and oats, and the costs of tariffs will be passed on to American consumers.
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2:40 p.m.
The Canadian Bankers Association says there are 16 U.S.-based bank subsidiaries and branches that do business in Canada that hold a combined $113 billion in assets.
The association issued that statement after Trump claimed Canada does not allow American banks to open or do business in the country.
Trump's comments followed his morning call with Trudeau about the 25 per cent tariff, which was originally centred on border security issues like illegal migration and drug trafficking.
Trump told reporters in the Oval Office that he wants to see Canada become the 51st state.
2:30 p.m.
Alberta Premier Danielle Smith's government says her cabinet will meet soon to discuss potential next steps in response to U.S. tariffs.
Other provincial premiers say they're moving to restrict or cancel contracts with American firms, and banning U.S. alcohol sales from provincial liquor stores.
When asked whether Alberta's government is considering similar moves, spokesperson Sam Blackett says in a brief statement that cabinet "will consider actions that could be taken by Alberta's government."
Smith has said her province will continue its diplomatic efforts to resolve the dispute, and is calling for her Canadian counterparts to step up to help build domestic oil and gas pipelines.
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2 p.m.
Trumps says he doesn't know what Trudeau could do that could result in Canada getting the same tariff pause offered to Mexico this morning.
"What I'd like to see" Canada become our 51st state," Trump said from the Oval Office.
The president says he'd like to see vehicle manufacturing take place entirely in the U.S. and insists the country doesn't need Canada's energy.
Trump said if "people wanted to play the game right, it would be 100 per cent certain they become a state." He added it wouldn't be without pain, but that pain would be mostly on the Canadian side.
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1:45 p.m.
Conservative Leader Pierre Poilievre says the House of Commons should be reconvened to respond to the tariff threat and is pitching his own response to U.S. border concerns.
Speaking in Vancouver, Poilievre said he would have military assets deployed on the border, including helicopters, hire at least 2,000 more CBSA officers, build border surveillance towers and deploy drones to watch for incursions and track deportees to ensure they are leaving.
Poilievre is also calling for the removal of interprovincial trade barriers like the patchwork of regulations on professions like trucking.
Poilievre did not share his thoughts on Mexico getting a tariff pause because he was not on the call Trudeau had with Trump this morning.
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1:30 p.m.
Trump says in the Oval Office that he had a "great" talk with Mexican President Claudia Sheinbaum, who is deploying 10,000 troops to the border, but adds tariffs are not off the table as negotiations begin between the two countries.
Mexico received a one month pause on 25 per cent tariffs that were to be introduced Tuesday morning.
Trump said Canada is "tough" to do business with, adding that Canada does not allow American banks to do business in the country.
Trump and Trudeau are expected to speak again at 3 p.m.
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12:40
B.C. Premier David Eby says Canada wants to get back on track with the U.S. and this trade dispute will only make families poorer on both sides of the border.
Eby says that the "absurdity" of allies and neighbours hurting each other in a trade war is leaving people "angry and upset," a feeling he shares.
Eby says he's confident the relationship with the U.S. will be repaired but, in the meantime, he is focused on diversifying B.C.'s economy and looking for other markets for its critical minerals.
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12:37
Newfoundland and Labrador Premier Andrew Furey says that it's "unfortunate" to see the U.S. impose tariffs that force his province to take action.
Furey says the tariffs are an attack on Canadian identity and values and "unless you stand up to a bully, you will continue to be bullied."
Furey says the provincial liquor stores sell about $26 million worth of American products annually, and they will be removed from the shelves at midnight tonight.
The premier says this action "hurts" as American brewery Coors has a bottling operation in the province.
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12:35
Yukon Premier Ranj Pillai says northerners are feeling extremely anxious about the incoming U.S. tariffs.
Pillai says the cost of groceries in Yukon is already high as it imports dairy products, fruits and vegetables from the U.S.
He says the tariffs may also affect infrastructure projects in Yukon and on Vuntut Gwitchin First Nation, a remote fly-in community that is relying on American equipment to build new homes this year.
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12:20
The National Chief of the Assembly of First Nations says provinces and territories cannot exclude First Nations as they make plans to retaliate against U.S. tariffs.
Cindy Woodhouse Nepinak says any conversations about critical minerals, oil and gas or any other commodity must include First Nations, and communications with the provinces and territories have been limited to date.
She says tariffs threaten the economic stability of First Nations businesses, disrupt critical supply chains and undermine the principles of nation-to-nation relationships.
She says she'll be meeting with her counterparts in the U.S. in the coming weeks to talk about cross-border mobility for Indigenous Peoples and co-operation in light of the tariff threat.
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12:15
Toronto Mayor Olivia Chow says she has instructed city staff to work with the federal and provincial governments to respond to looming U.S. tariffs.
Chow says Toronto will have an action plan that will include a buy-Canadian initiative to prioritize buying local goods and services.
She says the city's plan will also include a review of Toronto's procurement policies and contracts.
Chow says she is convening a team of the city's largest employers and key labour leaders to provide advice as Toronto moves to respond to the U.S. tariffs.
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12:05
Manitoba Premier Wab Kinew says he is looking for ways to prevent companies in the United States from bidding on provincial contracts.
Kinew says cabinet ministers with portfolios tied to the economy have been tasked with looking at changes to procurement procedures.
Kinew says if U.S. President Donald Trump is bent on taking jobs out of Manitoba, the province has to fight back.
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12:00
Saskatchewan Premier Scott Moe says Canada should look at making the Canada Border Services Agency a branch of the Canadian Armed Forces.
Moe says he brought the idea forward when the premiers met with Trudeau and members of his cabinet last month to talk about Canada's tariff response.
The Saskatchewan premier says that bringing the CBSA into the military would increase border resources and defence spending in one move, which would help Canada get closer to its NATO commitment of spending two per cent of GDP on defence.
He's calling on Finance Minister Dominic LeBlanc to consider the proposal.
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11:15
New Brunswick Premier Susan Holt says her government will stop signing deals with American companies, except for critical services that cannot be "immediately replaced."
Like some other premiers, she has directed her province's liquor seller to stop purchasing U.S. alcohol and remove American products from the shelves.
NB Liquor sells about $40 million worth of American products annually.
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11:00
President Donald Trump says he had a "very friendly" conversation with Mexican President Claudia Sheinbaum, during which she agreed to "immediately" put 10,000 Mexican soldiers on the shared border to combat fentanyl trafficking and illegal immigration.
In a post on his own social media platform, Truth Social, Trump says he is pausing his plan to impose 25 per cent tariffs on Mexico for one month as negotiations are held between the two countries.
Trump says the American side will be led by Secretary of State Marco Rubio and his nominee for commerce secretary Howard Lutnick.
Trump concludes by saying he looks forward to the negotiations.
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10:50
Mexican President Claudia Sheinbaum says her country is being granted a one-month reprieve from U.S. tariffs.
In a statement posted on the social media platform X, Sheinbaum says she spoke with Trump this morning and calls it a "good conversation" with "great respect" for Mexico's sovereignty.
She says Mexico has agreed to station 10,000 members of its national guard on the U.S. border to combat drug trafficking with a focus on fentanyl.
In exchange, Sheinbaum says the U.S. committed to working on preventing the movement of high-powered weapons into Mexico.
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10:50
Prince Edward Island's Green Party is calling on the government to establish a task force dedicated to identifying and securing new markets for the province's goods to address the 25 per cent tariffs imposed by the United States.
It says this task force could engage with international partners, trade organizations, and domestic stakeholders to reduce the province's reliance on U-S trade.
The Green Party is also asking the government to launch a provincewide "Buy Local, Build Local" campaign to promote Island-made products.
It's asking for accessible guides to help Islanders identify Canadian-made products, to ensure support for domestic businesses.
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10:30 a.m.
Poll results released today suggest that almost two-thirds of residents in the Maritimes expect to travel less to the United States because of Donald Trump's presidency.
The Narrative Research survey of 1,618 residents of Nova Scotia, New Brunswick and P.E.I. 鈥� conducted between Jan. 30-31 鈥� found that 62 per cent of respondents said they would spend less time travelling south, with the top reason being dissatisfaction or disagreement with Trump's leadership. One-third of those curtailing their travel cited financial reasons specifically related to tariffs, and opposition to Trump's economic policies.
A similar survey in December found only 37 per cent of respondents were expecting to travel less to the U.S.
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10:30 a.m.
Ontario Premier Doug Ford says U.S. President Donald Trump is causing Canadians to face some of their toughest challenges ever with tariffs coming into effect on Tuesday.
He says that if Canada is going to win the fight, everything needs to be on the table and policy-makers must identify critical points of leverage for maximum impact.
Ford, who is campaigning for re-election, announced today that he would rip up a $100-million deal with Elon Musk's satellite internet constellation Starlink, following the premier's announcement that the province's liquor monopoly would pull American products off the shelves.
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10 a.m.
Prime Minister Justin Trudeau's office confirmed he spoke with U.S. President Donald Trump this morning and will speak with him again later today.
Trump has linked his coming trade war with Canada to fentanyl crossing the border into the U.S., but in a post on Truth Social he also questioned why Canada, in his words, "doesn't even allow U.S. banks to open or do business there."
This report by The Canadian Press was first published Feb. 3, 2025.
The Canadian Press
