Wednesday 12 / March / 2025
US President Donald Trumpon 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.
What prompted Trump to double the tariffs?
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."
Tensions with Canada continue to escalate
The White House announced the original 25% tariffs on Canadian goods in early February, justifying the move by claiming the "threat posed by illegal aliens and drugs" was not being handled. The tariffs came into force in early March, but within days were paused after Canada agreed to send additional troops to the border.
On Monday, the premier of Ontario — a border province which supplies energy to the US states of New York, Michigan and Minnesota — announced he would be imposing a 25% cost hike on electricity for American customers. He also urged other premiers to set their own price increases on key export goods.
Trump's announcement on Tuesday comes in direct response to Ontario's move.
He also reiterated his desire to incorporate Canada into the United States, saying "the only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all Tariffs, and everything else, totally disappear."
He then called the US-Canada border an "artificial line of separation drawn many years ago," a false claim he has made before.
