According to the U.S. media outlet Star Tribune, Trump's threat to double tariffs on Canadian steel and aluminum led the Ontario provincial government to suspend the increases on electricity sold to the United States. As a result, Peter Navarro, White House trade advisor, announced that Trump halted the proposal to double tariffs, although a 25% tariff on all steel and aluminum imports remains in effect starting March 12.
Donald Trump changed his mind after a call between Ontario Premier Doug Ford and U.S. Secretary of Commerce Howard Lutnick. Peter Navarro confirmed that Trump would not increase tariffs to 50% as initially planned, without providing further details.
Another interesting point is the reason behind the original intention to impose 50% tariffs on steel and aluminum from Canada. Trump mentioned that it was a response to the 25% increase in electricity prices by Ontario for selling electricity to the U.S.
In response to this situation, Mark Carney, Canada's future Prime Minister, promised to provide a response of "maximum impact" to the tariffs imposed by the U.S. Carney sees this action as a direct attack on the Canadian economy and plans to act accordingly when he takes office.
Carney stated that Trump's tariffs are an attack on Canadian workers, families, and businesses. However, after the call between senior officials from Canada and the U.S., Trump decided not to increase tariffs on Canadian steel and aluminum, reversing his previous decision.
