Canada, U.S. Form Joint Strike Force to Combat Crime, Fentanyl, and Money Laundering Amid Trade Tensions

A newly established Canada-U.S. Joint Strike Force aimed at tackling organized crime, fentanyl smuggling, and money laundering played a crucial role in preventing a trade war between the two nations.

On Monday, U.S. President Donald Trump halted his threat of imposing 25% tariffs on Canadian and Mexican imports at the last minute, agreeing to a 30-day pause in exchange for commitments from both countries to enhance border security and enforcement against crime.

The decision was met with relief in both Ottawa and Mexico City, as Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum confirmed their respective governments would intensify efforts to curb immigration and drug trafficking. The agreement delayed the planned tariffs, which were set to take effect on Tuesday, providing a 30-day window for both countries to demonstrate tangible enforcement actions.

Canada committed to deploying additional technology and personnel at its border with the United States and to launching collaborative operations against organized crime, fentanyl distribution, and money laundering. As part of the deal, Canada also pledged an additional $200 million toward combating organized crime and the drug trade, alongside appointing a fentanyl czar and formally designating drug cartels as terrorist organizations.

Under the agreement between Trudeau and Trump, Canada will establish a new joint strike force specifically targeting the illicit production and trafficking of fentanyl, a deadly opioid fueling the drug crisis in North America.

Discussions between the two leaders also touched on Canada's previous commitment in December 2024 to invest $1.3 billion over six years in border security improvements. This investment includes increased surveillance through additional helicopters, advanced technology, and personnel reinforcement. “Nearly 10,000 frontline personnel are and will be working on protecting the border,” Trudeau stated.

Despite these efforts, U.S. authorities reported that only 19.5 kilograms of fentanyl were seized along the Canadian border last year—a mere 0.2% of the nearly 11 tonnes intercepted across the United States.

“As President, it is my responsibility to ensure the safety of all Americans, and I am doing just that. I am very pleased with this initial outcome,” Trump posted on social media.

The 30-day tariff suspension is seen as a test period, according to David Asher, a senior fellow at the Hudson Institute who has worked with the U.S. Drug Enforcement Administration for more than 20 years. He pointed out that U.S. law enforcement officials have long been frustrated with Canadian disclosure laws, which they believe hinder their ability to protect confidential sources in court, thus complicating legal proceedings against organized crime.

“The networks that reside in Canada are dominant,” Asher told The Globe and Mail. “They’re huge.”

For Canada, he said, “it’s time to get past the lip service. This is a time for action, not talk. And we’ll have 30 days to figure that out.”

Canadian industry groups, fearing disruptions to supply chains, welcomed the pause in tariffs.

“That’s very encouraging news,” said Chris Davison, president of a trade association representing Canadian canola producers. “We have a highly integrated industry that benefits both countries.”

Meanwhile, Trump suggested that the 27-nation European Union could be his next target for tariffs, though he did not specify a timeline.

At an informal summit in Brussels on Monday, EU leaders stated that they were prepared to retaliate if the U.S. imposed tariffs but also emphasized the need for negotiation and diplomacy. The U.S. remains the EU’s largest trade and investment partner.

Trump hinted that the United Kingdom, which left the EU in 2020, might be spared from any potential tariffs.

Over the weekend, Trump acknowledged that his tariffs could cause some short-term economic strain for American consumers but maintained that they were necessary to curb illegal immigration and drug trafficking while also bolstering domestic industries.

By fLEXI tEAM