#TariffHODL

In early February 2025, President Donald Trump announced a 25% tariff on imports from Canada and Mexico, citing concerns over illegal immigration and fentanyl trafficking. Energy imports from Canada were subjected to a lower 10% tariff.

In response, Canadian Prime Minister Justin Trudeau condemned the tariffs as unjustified and announced a retaliatory $155 billion tariff package targeting U.S. goods.

Following negotiations, both countries agreed to a 30-day delay in implementing these tariffs. Canada committed to appointing a "fentanyl czar" and designating drug cartels as terrorist organizations to address U.S. concerns.

However, tensions escalated when reports emerged that President Trump was considering the annexation of Canada as the 51st U.S. state, citing interest in Canada's abundant natural resources. Prime Minister Trudeau confirmed these discussions, emphasizing the need to protect Canada's sovereignty.

These developments have led to heightened uncertainty in U.S.-Canada trade relations, with both nations preparing for potential economic challenges ahead.