The Trump administration says it will no longer double the 25 per cent tariff being imposed on Canadian aluminum and steel Wednesday after Ontario suspended the surcharge on electricity it sends to three states.
On Tuesday morning, U.S. President Donald Trump threatened to impose a 50 per cent tariff on Canadian steel and aluminum in response to the electricity surcharge that Ontario implemented the day before. In a Truth Social post, the president wrote he would double the tariff on steel and aluminum and that he would declare a “National Emergency on Electricity” in areas affected.
Ontario Premier Doug Ford and Commerce Secretary Howard Lutnick talked on the phone hours later, agreeing to drop the surcharge and meet in Washington on Thursday for trade negotiations.
“After President Trump threatened to use his executive powers to retaliate with a colossal 50 per cent tariff against Canada, Ontario Premier Doug Ford spoke with Secretary Lutnick to convey that he is backing down on implementing a 25 per cent charge on electricity exports to the United States,” White House spokesman Kush Desai said in a statement.
“Pursuant to his previous executive orders, a 25 per cent tariff on steel and aluminum with no exceptions or exemptions will go into effect for Canada and all of our other trading partners at midnight, March 12th.”