Trump Reverses Plans for Increased Tariffs on Canadian Metals After Ontario's Concessions

In a recent turn of events, the tension between the U.S. and Canada eased as both parties found common ground on trade issues.

On March 11, 2025, President Trump made headlines by threatening to significantly increase tariffs on steel and aluminum imports from Canada, potentially doubling them to 50%. This move was positioned as a reaction to newly imposed charges on U.S. electricity by the Canadian province of Ontario, which were seen as retaliatory following Trump's recent tariffs on the nation. However, after a day filled with high stakes and negotiations, cooler heads prevailed. Ontario’s Premier announced the suspension of the electricity surcharge, prompting a response from Trump at the White House, where he indicated a willingness to reconsider the tariff hike.

White House spokesman Kush Desai hailed the development as a win for the American economic strategy, stating that Trump's threats had compelled the Canadian side to back down. As a result, Canada will now face the same 25% tariff on metals as other trading partners, set to take effect at midnight.

This altercation reflects the ongoing volatile landscape of international trade under the Trump administration, which has repeatedly unsettled markets and trading relationships while asserting America’s economic leverage on the world stage.