 "'Cooler heads prevailed': Trump walks back on threat of 50% tariffs on Canadian steel imports")
US President Donald Trump has decided to halt the plan to double US tariffs on Canadian steel and metal imports. The move comes just hours after he first threatened increasing the duties on these products to 50 per cent.
While the pause on the 50 per cent tariffs is a breather, levies of 25 per cent that were announced earlier are still going ahead and will take effect from the March 12.
Trump decided to press pause on the tariffs after a decision by the Canadian province of Ontario to suspend the new 25 per cent charge on electricity it exports to certain northern states in the United States.
This suspension followed Trump’s threat to significantly raise tariffs on Canada.
The entire episode marked the latest skirmish in a trade war that risks economic damage to both the North American countries.
In an interview with CNBC, White House Seniour Counselor Peter Navarro said that “Cooler heads prevailed” when it came to Ontario’s electricity surcharge, making room for the halt in the doubling of tariffs on Canadian steel and metal imports.
US-Canada trade war
On February 1, 2025, President Donald Trump announced a 25 per cent tariff on all imports from Canada and Mexico, citing concerns over trade imbalance, illegal immigration and drug trafficking. These tariffs were initially set to take effect on February 4 but were subsequently delayed to March 4 following negotiations.
Then, there was another delay . The US administration decided the additional levies would come into effect on March 12.
Prime Minister Justin Trudeau condemned the US tariffs as unjustified. In retaliation, Canada imposed 25 per cent tariffs on $30 billion worth of US goods, with plans to expand this to $125 billion.
Impact Shorts
More ShortsIn retaliation to US President Donald Trump’s tariffs, Canada’s Ontario province has banned US companies from all government contracts, cancelled a contract with Elon Musk’s Starlink, and threatened to cut electricity supplied to millions across US states.
The trade war has led to a significant shift in Canadian consumer behaviour. Many Canadians have begun boycotting US products and canceling trips to the United States.
With inputs from agencies
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