In a swift turn of events, the U.S. canceled plans to impose a hefty 25% tariff on Canadian steel and aluminum 🔩 after Ontario scrapped its own tariffs on electricity exports to three American states. The move cools a heated trade dispute—for now.
✉️ 'Premier Doug Ford conveyed he’s backing down,' said White House spokesperson Kush Desai, confirming the truce. Earlier, President Trump had threatened tariffs as high as 50% in retaliation for Ontario’s energy fees targeting Michigan, Minnesota, and New York ⚡.
The deal comes ahead of a critical April 2 deadline for reciprocal tariffs under the United States-Mexico-Canada Agreement (USMCA) 🇺🇸🇨🇦🇲🇽. Ford will meet U.S. Commerce Secretary Howard Lutnick this week to discuss ‘renewed’ trade terms.
🔍 Key context: The U.S. had initially imposed broad 25% tariffs on March 4, only to backtrack days later by exempting goods meeting USMCA terms. Canada retaliated with CA$155B in tariffs, triggering Ontario’s now-suspended electricity surcharge.
📊 Stats alert: About 38% of Canadian imports to the U.S. currently qualify for tariff exemptions, per U.S. officials—though steel and aluminum will face universal 25% tariffs starting March 12 unless exempted by new deals.
Trade experts call it a temporary reprieve: 'This dance of tariffs and truces reflects mounting pressure to stabilize North American supply chains,' one analyst told NBC.
