Canada has adopted Mexico in a current transfer to develop border safety to briefly delay tariffs. Justin Trudeau introduced that $1.3 billion will go right into a border plan, together with new know-how, tools, and personnel. Trudeau mentioned he shall be appointing a Fentanyl Czar to supervise drug enforcement and can spend C$200 million on a brand new intelligence directive to deal with drug-related crimes.
The peculiar facet is that ALL of this was agreed upon final yr. Public Security Canada revealed “The Government of Canada’s Border Plan: significant investments to strengthen border security and our immigration system” on December 18, 2024, outlining the identical plan to inject C$1.3 billion into US-Canada border safety.
Because the company famous:
“Canada is investing $1.3 billion to bolster security at the border and strengthen the immigration system, all while keeping Canadians safe. This includes $667.5M for the Royal Canadian Mounted Police, $355.4M for the Canada Border Services Agency, $180M over 6 years for the Communications Security Establishment, $77.7M for Health Canada, and $20M over five years for Public Safety Canada.”
The fentanyl disaster with Canada has been overstated. America seized 43 kilos of fentanyl final yr, amounting to 0.2% of all fentanyl seized final yr. Mexico, however, was accountable for 96.6% of fentanyl seized on the border or 21,158 kilos. The quantity of fentanyl seized on the Canadian border did enhance from 2023, however solely by 2 lbs.
Have been the tariffs a bluff? The markets don’t like this volatility. The central banks is not going to respect this confusion as they haven’t any method of understanding methods to transfer ahead with these tariffs up within the air. The central banks are at all times making an attempt to interpret future geopolitical occasions, and it’s almost unimaginable for them to take action when huge plans change on the eleventh hour. And what in regards to the firms who want to cost in these tariffs? Will they be compelled to take action preemptively?
If Trump’s concern is genuinely about securing the border, then Trump has gained. Mexico and Canada are working to safe the border as promised instantly. If his concern is to convey manufacturing again to America, then we’ve a much bigger drawback on our arms. Canada is solely making good on their promise from final yr, however this isn’t a brand new improvement. Commerce between the previous alliance will turn out to be clearer as soon as the USMCA deal is renegotiated.
