Trump halts doubling of tariffs on Canada metals, Ontario pauses electricity hike
The originally planned 25 per cent duties on steel and aluminium products on all US trading partners will still go ahead
US President Donald Trump’s threat Tuesday to double his planned tariffs on steel and aluminium from 25 per cent to 50 per cent for Canada led the provincial government of Ontario to suspend its planned surcharges on electricity sold to the United States.
As a result, White House trade adviser Peter Navarro said the US president pulled back on his doubling of steel and aluminium tariffs, even as the federal government still plans to place a 25 per cent tariff on all steel and aluminium imports starting Wednesday.
The drama delivered a win for Trump but also amplified concerns about tariffs that have roiled the stock market and stirred recession risks. Tuesday’s escalation and cooling in the ongoing trade war between the United States and Canada only compounded the rising sense of uncertainty of how Trump’s tariff hikes will affect the economies of both countries.
Trump shocked markets Tuesday morning, saying the increase of the tariffs set to take effect Wednesday was a response to the 25 per cent price hike that Ontario put on electricity sold to the United States.
“I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump posted on Truth Social.