Trump Halts Plans to Double Tariffs on Canadian Imports
Washington — In a significant shift, President Trump will not proceed with plans to raise tariffs on Canadian steel and aluminum imports from 25% to 50%, as confirmed by Commerce Secretary Howard Lutnick during an interview with CBS News.
Background of Tariff Discussions
The tariff debate escalated after Trump expressed intentions to double the existing tariffs on Canadian imports, a move prompted by Ontario’s imposition of a 25% surcharge on electricity exported to the U.S. This announcement coincided with a collaborative discussion between Secretary Lutnick and Ontario Premier Doug Ford, aimed at addressing ongoing economic tensions.
Clarifications on Tariff Rates
During the interview, Lutnick stated, “No, that’s off, too. So, we’re at 25% for steel and aluminum because that’s where we were,” effectively easing concerns regarding the anticipated hike. White House spokesperson Kush Desai later reiterated that the existing 25% tariff would remain in effect for Canada and other trading partners starting March 12.
Developments in U.S.-Canada Relations
Hours before these announcements, Ford and Lutnick disclosed that Canada would suspend its electricity surcharge, leading to a productive dialogue regarding the North American trade relationship. Ford’s communication on X social media platform highlighted the commitment to continue discussions on the United States-Mexico-Canada Agreement (USMCA) and encouraged a meeting slated for March 13 in Washington.
Impacts of Trump’s Statements
Despite the halt on increased tariffs, President Trump had initially indicated he would implement a substantial increase, citing the unfairness of Ontario’s electricity surcharge. He suggested the introduction of a “national emergency” concerning electricity prices in regions affected by the surcharge in Michigan, New York, and Minnesota.
“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA,” Trump stated on Truth Social.
Trump’s Broader Interests
In his remarks, Trump continued to advocate for a deeper integration of Canada into the United States, suggesting it should become the 51st state. He argued this change would eliminate tariffs and bolster security for both nations.
Market Reactions
Meanwhile, financial markets reacted negatively, with concerns about Trump’s tariff strategies contributing to a decline in stock prices amid fears of a potential economic downturn in the U.S.
