- Trump reverses plan to double tariffs on Canadian steel but keeps 25% in place.
- Ontario suspends electricity surcharge after Trump’s tariff threat escalates trade tensions.
- White House claims victory, citing US economic leverage in trade negotiations.
Donald Trump has reversed his decision to double US tariffs on Canadian steel and metal imports to 50%, just hours after initially making the threat. However, the existing 25% tariffs will still proceed as planned, taking effect on March 12.
The decision follows a move by Ontario’s provincial government, which suspended its 25% surcharge on electricity exports to certain northern US states. This came after Trump warned of sharply escalating tariffs against Canada, leading to another tense episode in the ongoing US-Canada trade conflict.
Trump’s trade adviser Peter Navarro, speaking to CNBC, confirmed that the president had backed down from his latest tariff threat. “Cooler heads prevailed,” Navarro said, acknowledging the role of negotiations in defusing tensions.
EDITOR’S PICKS
- Lagos Assembly Crisis: ‘Obasa Lacks Integrity, Should Face EFCC’ – Rhodes-Vivour
- Suspended Lagos Assembly Clerk, Onafeko, Resumes Office After Court Reinstatement
- Israeli Forces Vow Not to Withdraw from Gaza-Egypt Border Despite Ceasefire Deal
Canada, one of America’s closest trade allies, has been a primary target of Trump’s aggressive trade policies. In previous months, his administration imposed 25% tariffs on steel and aluminum, citing concerns over illegal immigration and drug smuggling across the US-Mexico-Canada borders. Although Trump signed temporary exemptions for certain goods, Canada remains subject to the full force of the levies, which will take effect on Wednesday.
In response, Canada has strongly condemned the tariffs as “unjustified” and announced a C$30 billion ($22 billion USD) retaliatory tariff package on US imports. Ontario Premier Doug Ford had earlier threatened to tax electricity exports to the US in an attempt to pressure Washington into lifting the tariffs.
Ford had also warned that Ontario “would not hesitate to shut off electricity completely” if the US continued to escalate the trade dispute. However, in announcing his decision to suspend the electricity duties, Ford acknowledged the need to focus on broader trade negotiations.
“With any negotiation, there’s a point where both sides get heated, and the temperature needs to come down,” he said, adding that he was in discussions with US Commerce Secretary Howard Lutnick to seek a resolution. “They understand how serious we are. We have both agreed to let cooler heads prevail.”
Trump’s initial Tuesday morning social media post announced his intent to double tariffs on Canadian steel and aluminum, citing Ontario’s move as justification. He also took aim at Canada’s reliance on US military protection, reiterating his controversial claim that Canada should become the 51st US state.
According to Trump, statehood would “make all tariffs, and everything else, totally disappear.”
FURTHER READING
- Impeached Speaker, Obasa Presides Over 4-Man Plenary
- Lagos Shuts Redeemed Church, Assemblies of God, Hotels, Others Over Pollution (PHOTOS)
- FG Plans Electricity Tariff Hike for Non-Band-A Customers
The White House hailed the outcome as another win for Trump’s trade strategy, stating that he had successfully used the leverage of the American economy—which it described as “the best and biggest in the world”—to secure concessions from Canada.
Tariffs are taxes imposed on imported goods. The companies bringing foreign products into the US must pay these duties to the government, often leading to higher consumer prices.
Click here to watch our video of the week:
https://youtu.be/UcqWkIF0i4E
