After threatening Canada with 50% tariffs on aluminium and steel, US President Donald Trump is now reevaluating this new plan. According to a Bloomberg report, After Ontario said that they will be suspending a 25% surcharge on the electricity to the US, Trump told reporters that he might reconsider his tariff threat. When asked if the suspension of 25% surcharge will make him stand down on his tariff threat, Trump said, ” I’m looking at that, but probably so.” He further added, “I’ll let you know about it.”
The dramatic trade war between Canada and US has kept the global markets on edge with uncertainties looming over North American industries.
Trump spoke shortly after Ontario Premier Doug Ford and US Commerce Secretary Howard Lutnick said they will meet on Thursday in Washington. They also mentioned that Ontario would suspend its plan to slap surcharge on electricity sent to the US. Ford and Lutnick said in a statement that they had a productive discussion about the economic ties between the US and Canada, reported Bloomberg.
Ford told reporters that the US understands how serious Canada is with their electricity surcharge threat but simultaneously acknowledged that both sides need to calm down as “both parties are heated”, the report said.
Canada’s U-turn on electricity surcharge to the US
The announcement of Canada suspending surcharge came just hours after Trump posted on social media that he was going to double the metal tariffs that were set to start soon after midnight. Trump had announced that he would increase taxes on Canadian automobile parts on April 2 if Canada does not remove tariffs on dairy products and other US goods.
Trump said that this move would permanently shut the automobile manufacturing business in Canada. The US President also said that if Canada becomes a part of the US, he would make all tariffs “disappear”.
Canadian Prime Minister-Designate Mark Carney had taken to social media and said that Trump’s latest tariffs were an “attack on Canadian workers, families, and businesses.” He had promised to take subsequent actions that would have maximum impact on the US and minimal impact on Canada.