March 11 (UPI) — President Donald Trump announced Tuesday he won’t impose 50% retaliatory tariffs against Canada on Wednesday that would have doubled planned tariffs on steel and aluminum imports.
Ontario Premier Doug Ford on Tuesday afternoon also announced he is pausing a 25% surcharge on the Canadian province’s electricity exported to U.S. states, CNBC, CNN and The Hill reported.
Trump earlier said in a post on Truth Social he would increase the tariffs on Canadian imports to 50% in response to Canada imposing a 25% tariff on electricity transmitted from Ontario to the United States.
Trump already placed 25% tariffs on Canadian imports earlier this month, which still are in play.
Ford and U.S. Commerce Secretary Howard Lutnick agreed to meet on Thursday to renegotiate the U.S.-Mexico-Canada trade agreement.
The additional tariffs were to go into effect on Wednesday and would have raised electricity costs in Michigan, New York and Minnesota.
Trump earlier Tuesday announced he would double to 50% the amount of his planned tariffs on Canadian-produced steel and aluminum after Ford announced the electricity surcharge.
Trump called Canada “one of the highest tariffing nations anywhere in the world.”
“Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous,” Trump said. “I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada.”
Ontario Premier Ford had warned after Trump’s announcement that Canada would shut off its supply of electricity to the United States if the trade war continues to escalate.
Canada is the largest exporter of steel and aluminum to the United States, according to CNBC. It exported 6.6 million net tons of steel and 3.5 million tons of aluminum to the United States in 2024. Brazil exported 4.5 million tons of steel to the United States.
The president also threatened to substantially increase tariffs on cars imported from Canada beginning April 2, unless Canada drops long-term tariffs on the United States. He said this would “essentially, permanently shut down” automobile manufacturing in Canada.
Trump also had reiterated his desire to annex Canada, urging that it would make tariffs disappear.
“The only thing that makes sense is for Canada to become our cherished Fifty First State,” Trump posted.