**Trump Backs Down on Additional 25% Tariff on Canadian Steel and Aluminum**

 Trump Backs Down on Additional 25% Tariff on Canadian Steel and Aluminum

Trump Backs Down on Additional 25% Tariff on Canadian Steel and Aluminum Amid Trade Tensions

By Michelle Stoddart and Max Zahn
March 12, 2025, 3:51 AM

President Donald Trump on Tuesday reversed course on his plan to impose an additional 25% tariff on Canadian steel and aluminum products, which would have been on top of an existing 25% tariff set to take effect Wednesday.

The decision followed an agreement between Ontario Premier Doug Ford and U.S. Commerce Secretary Howard Lutnick to suspend a planned 25% surcharge on electricity exports from Ontario to the U.S. Ford had previously threatened the surcharge in retaliation for Trump’s tariff increase.

In a joint statement on X, Ford and Lutnick announced the suspension of the electricity surcharge and confirmed a White House meeting on Thursday to discuss a potential renewal of the U.S.-Canada trade agreement.

Tensions Leading to Reversal

Trump’s initial announcement of doubling tariffs on Canadian steel and aluminum came after Ford’s warning about the electricity surcharge. While the additional tariff increase has been halted, the original 25% tariffs on steel and aluminum imports from all countries—including Canada—will still take effect on Wednesday, according to White House spokesman Kush Desai.

The U.S. imports more steel and aluminum from Canada than any other country, making the tariffs a significant economic flashpoint.

Escalating Trade War

The developments marked a brief pause in an escalating trade war between the two countries. After the U.S. initially imposed 25% tariffs on Canadian imports, Canada retaliated with its own 25% tariff on $30 billion worth of U.S. goods. An additional $125 billion in Canadian tariffs is set to take effect in 21 days, according to then-Prime Minister Justin Trudeau.

Trudeau sharply criticized Trump’s trade policies, calling the tariffs "dumb" and arguing they "don’t make sense."

Ford and Trump’s Tough Talk

Even before the apparent deal, both Ford and Trump took a hardline stance on trade.

"That's the last thing I want to do," Ford told CNBC regarding the electricity surcharge. "I want to send more electricity down to the U.S., to our closest allies. But if [Trump] continues to hurt Canadian families, Ontario families, I won’t hesitate to act."

Meanwhile, a spokesperson for Canada’s incoming Prime Minister Mark Carney described Trump’s tariffs as an "attack on Canadian workers, families, and businesses." The spokesperson added that Canada would maintain its retaliatory tariffs until the U.S. demonstrates "respect and credible, reliable commitments to free and fair trade."

White House Response

Speaking at the White House on Tuesday, Press Secretary Karoline Leavitt confirmed that Trump had not yet spoken with Carney since he was designated prime minister on Sunday but said, "Certainly, [Trump's] phone is always open to leaders who want to speak with him."

While tensions have eased slightly with the latest agreement, the future of U.S.-Canada trade relations remains uncertain.

Trump Reverses Course on Additional 25% Tariff on Canadian Steel and Aluminum Amid Trade War Escalation

By Michelle Stoddart and Max Zahn
March 12, 2025, 3:51 AM

President Donald Trump on Tuesday backed down from his plan to impose an additional 25% tariff on Canadian steel and aluminum products, which would have come on top of an existing 25% tariff set to take effect Wednesday.

The reversal followed an agreement between Ontario Premier Doug Ford and U.S. Commerce Secretary Howard Lutnick to suspend a planned 25% surcharge on Ontario electricity exports to the U.S. Ford had threatened the surcharge in retaliation for Trump’s proposed tariff increase.

In a joint statement on X, Ford and Lutnick confirmed the suspension of the electricity surcharge and announced a White House meeting on Thursday to discuss a potential renewal of the U.S.-Canada trade agreement.

Trade War Tensions Escalate

While Trump’s decision marks a temporary de-escalation, the original 25% tariffs on steel and aluminum imports from all countries—including Canada—will still take effect on Wednesday, according to White House spokesman Kush Desai. The U.S. imports more steel and aluminum from Canada than any other country, making the tariffs a major economic flashpoint.

Canada had responded swiftly to the U.S. tariffs, imposing 25% retaliatory tariffs on $30 billion worth of American goods. Then-Prime Minister Justin Trudeau warned that an additional $125 billion in Canadian tariffs would follow in 21 days if the dispute remained unresolved.

Trudeau blasted Trump’s tariff policies, calling them “dumb” and arguing they “don’t make sense.”

Ford and Trump’s Heated Rhetoric

Before the apparent deal, both Ford and Trump struck a defiant tone.

"That's the last thing I want to do," Ford told CNBC, referring to the electricity surcharge. "But as [Trump] continues to hurt Canadian families, Ontario families, I won’t hesitate to act."

Earlier, Canada’s incoming Prime Minister Mark Carney called Trump’s tariffs an "attack on Canadian workers, families, and businesses." He vowed to maintain Canada’s retaliatory tariffs until the U.S. showed "respect and credible, reliable commitments to free and fair trade."

At the White House, Press Secretary Karoline Leavitt confirmed that Trump had not yet spoken with Carney since his designation as prime minister. Asked whether the U.S. still considers Canada an ally, she responded, "They have always been an ally. Perhaps they’ve become a competitor now."

Trump Threatens Further Action

Despite the agreement, Trump signaled that tensions are far from over.

In a post on Truth Social, Trump warned that if Canada did not drop its existing tariffs, he would increase tariffs on Canadian auto imports starting April 2, a move he claimed would “essentially, permanently shut down” Canada’s automobile manufacturing sector.

Trump also demanded Canada remove tariffs on American dairy products and revived his controversial assertion that Canada should become the 51st U.S. state.

"The artificial line of separation drawn many years ago will finally disappear," Trump wrote. "Your brilliant anthem, ‘O Canada,’ will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!"

Meanwhile, Ford urged Trump to reconsider his tariffs, warning of economic turmoil.

"Markets are tanking. He needs to drop his tariffs and come to the table to negotiate a fair trade deal. Until he does, we won’t back down," Ford wrote in a post on X.

Fentanyl Allegations and the Root of the Trade Dispute

The revived trade war follows Trump’s claims that Canada has failed to stop illicit drugs like fentanyl from entering the U.S., despite a prior agreement between the two nations to strengthen border enforcement.

However, U.S. Customs and Border Patrol data shows that nearly all fentanyl seizures have occurred at the U.S.-Mexico border, with less than 1% intercepted at the Canadian border. Trudeau dismissed Trump’s claims as "false allegations" meant to justify the tariffs.

Despite Tuesday’s reversal, Trump’s latest threats suggest the U.S.-Canada trade dispute is far from over.