President Donald Trump announced Tuesday that he would double tariffs on Canadian steel and aluminum to 50%, prompting Ontario to withdraw its planned electricity surcharges on U.S. sales.
Tuesday's escalation and retreat in the ongoing trade war between the United States and Canada only compounded the rising sense of uncertainty in terms of how Trump's tariff hikes will play out. His spate of tax increases on imports and plans for more have roiled the stock market and stirred up recession risks.
Trump said on social media that the increase of the tariffs set to take effect on Wednesday is a response to the 25% 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.
Ontario Premier Doug Ford said on Tuesday afternoon that U.S. Commerce Secretary Howard Lutnick called him and Ford agreed to remove the surcharge. He said he was confident that the U.S. president would also stand down on his own plans for 50% tariffs on Canadian steel and aluminum.
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