The Tariff Strategy
On January 31, 2025, President Trump announced a 25% tariff on all goods imported from Canada and Mexico, along with an additional 10% tariff on Canadian energy imports. The move was part of a broader initiative to combat illegal immigration, drug & human/child trafficking and strengthen U.S. economic interests. Initially Canada responded with it’s own retaliatory tariffs on goods like yogurt, whiskey and steal.
Canada’s Commitments
After a visit from the Secretary of State Marco Rubio, Prime Minister Justin Trudeau responded swiftly with the following agreements:
- $1.3 billion plan to reinforce its border with the United States
- Deploying 10,000 personnel, advanced technology, drones and new law enforcement resources.
- Appointment of a “fentanyl czar”
- Listing cartels as terrorists
- Launch Canada – US joint strike force
- $200 million to a new intelligence directive on organized crime and fentanyl
Mexico’s Historic Commitments
President Claudia Sheinbaum also embraced cooperation, delivering significant commitments to bolster North American security and prosperity promising:
- 10,000 more Mexico national guard (additional to the 15,000 deployed)
- Mexico agreed to work with the U.S. on stemming the flow of firearms to cartels
Economic Stability in North America
These developments signify a major win for President Trump’s vision of prioritizing American security and economic stability. The agreements successfully safeguarded billions of dollars in trade, preventing economic hardship for businesses and consumers across all three countries by avoiding a potentially devastating trade war. They also demonstrate the effectiveness of using economic leverage to achieve meaningful results, setting a powerful precedent for future international negotiations. While some critics may view these actions as concessions, they ultimately underscore the strength of U.S. partnerships, as both Canada and Mexico displayed a clear willingness to collaborate on shared goals, reinforcing alliances across North America.
A Vision for the Future
By spurring unprecedented commitments from Canada and Mexico, this development strengthens North America’s position on the global stage. Tariffs on uncooperative countries could be a way to generate additional income to the US and potentially lower taxes for US citizens.
