US President Donald Trump on Tuesday halted plans to increase tariffs on steel and aluminum, from 25% to 50%, for Canada after the provincial government of Ontario suspended its outlined surcharges on electricity sold to the United States.
As a result, the White House trade adviser Peter Navarro said the US president pulled back on the threat of doubling tariffs for Canada.
But this does not mean there will, as yet, be a halt to the federal government plans to place a 25% tariff on all steel and aluminum imports starting Wednesday.
Earlier, Trump said he would double the proposed tariffs on Canadian aluminum and steel imports, bringing the total to 50%.
It came after Monday’s announcement from Ottawa Premier Doug Ford, who will implement a surcharge on electricity exports to the US in retaliation to Trump’s original tariffs on Canada.
In a post on his Truth Social platform, Trump then said he had instructed his commerce secretary to add an additional 25% tariff on steel and aluminum products from Canada that will go into effect on Wednesday.
The post immediately caused a stock market drop.
Trump also threatened additional tariffs on imported cars if Canada does not drop its tariffs.
Incoming Canadian prime minister Mark Carney responded to Trump’s announcement, calling the measure “an attack on Canadian workers, families, and businesses.”
“My government will ensure our response has maximum impact in the US and minimal impact here in Canada,” he said in a post on X.
He added that his new administration will keep the tariffs in place “until the Americans show us respect and make credible, reliable commitments to free and fair trade.”
