This transcript has been lightly edited for clarity.

At the 11th hour, the White House and Ottawa drew back the threat of tariffs and retaliatory tariffs after leaders of both countries were able to strike a deal where Canada is going to spend $1.3 billion on securing its border with the United States, appoint a fentanyl czar who's going to oversee Canada's operations to counter its fentanyl crisis, listing Mexican cartels as foreign terrorist organizations, and citing an intelligence directive that's going to govern how Canada deals with intelligence around organized crime. 

This isn't the first time that Trump has gone toe to toe with his North American trading partners. During his first administration, he threatened to tear up the NAFTA. It launched a flurry of renegotiations for the agreement that eventually became the US-Mexico-Canada agreement, the free trade agreement that still to this day governs trade between the three North American trading partners. 

Now, this does also point to the fact that the Trump administration holds this belief that Canada has been unfair to the United States and taken their partnership for granted. Officials in Ottawa point to the multiple benefits of having trade with the United States and the United States having trade with Canada, shared supply chains for critical minerals, highly integrated industries for energy and automobiles. The 36 of the US states have Canada as their top export market. The two economies are highly linked, raising fears of what a tariff spike and trade war would do to the North American economy.

 Now, it's not entirely clear what the Qhite House is asking for from their colleagues in Ottawa, but some things that have been publicly said are that the president wants more American bank access to the Canadian market. He's right. He's railed on Canada publicly for their laggard defense spending. Canada's one of very few NATO partners now that does not meet the 2% of GDP spending requirement. He's also complained about the United States, his trade deficit with Canada. Something that's pushed over the edge by the amount of oil and energy that the United States imports from Canadian producers. 

So in 30 days, Canada may or may not have tariffs placed back on them. It's going to depend on how these negotiations over a new economic deal go. But this isn't the only thing on the Canada-US trade plate right now. USMCA review is scheduled for 2026, and judging by how these tariff negotiations have gone, it's going to be a contentious time for North American trade.