Trump’s administration has retracted the decision to double tariffs on Canadian metals after Canada announced that it would reverse its decision to retaliate with a 25% tax on electricity sold to the U.S.
According to a recent report by WSJ, White House spokesperson Kush Desai said that a 25% tariff will still be imposed on Canada’s steel and aluminum from March 12. This includes imports from the other trading partners of the United States.
This announcement came after Ontario Premier Doug Ford and Commerce Secretary Howard Lutnick discussed turning down the electricity surcharge plan in exchange for easing Canadian metals’ tariffs.
Ford added that a meeting had been arranged on Thursday with Lutnick and US Trade Representative Jamieson Greer. The meeting will be based on re-establishing the trade pact between the US, Mexico, and Canada before Trump imposes automobile tariffs on Canada on April 2.
Mark Carney, Canada’s prime minister-designate, said Trump’s tariffs are a direct attack on the country’s households and businesses. He says Canadian tariffs will continue until the U.S. makes “credible, reliable commitments” to fair trade.
Ottawa has been alarmingly aware of Trump’s threat to annex Canada. Officials believe that Trump may act on these threats, causing serious harm to the Canadian economy.
Trump’s tariffs threats lead to stock market losses
The Dow Jones Industrial Average decreased by 1.1%.S&P experienced a drop of 0.8%. Nasdaq Composite slipped 0.2%. All these indexes experienced their worst two-day drop since August 2024.
However, these stock market indexes experienced some recovery following the reports about Ontario backing off from electricity export tax.
According to White House spokesperson Karoline Leavitt, the US is in a “period of economic transition from the mess that was created under Joe Biden and the previous administration.”
Officials have emphasized that metal imports will not be exempt from the tariffs starting Wednesday. “The White House has shown itself to be adaptable on this tariff issue”, says Sen. Bill Hagerty, an ambassador to Japan during Trump’s first term.
He added “I’ve seen him do steel and aluminum tariffs before, so I have no reason to not expect that will take place.”
The observers at Capitol Hill see uncertainty in the final policy outcome due to U.S. past exemptions of Canada and Mexico’s tariffs.
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