President Donald Trump has canceled plans to increase tariffs on Canadian steel and aluminum imports to 50%, White House trade advisor Peter Navarro confirmed on Tuesday.
What Happened: The reversal came hours after Trump announced the tariff hike in response to Ontario’s 25% tax on electricity exports to the U.S., which itself was retaliation for Trump’s earlier 25% tariffs on Canadian imports.
“We’re not going to see 50% tariffs come tomorrow,” Navarro told CNBC, praising Commerce Secretary Howard Lutnick for negotiating the resolution.
Ontario Premier Doug Ford agreed to pause the electricity surcharge following discussions with Lutnick. According to a joint statement, the two officials will meet Thursday in Washington to discuss a “renewed” trilateral trade agreement.
Ford had earlier threatened to shut off Ontario’s energy supply to Michigan, New York and Minnesota if Trump “continues to hurt Canadian families,” warning of a potential “Trump recession.”
See Also: Markets Bounce As Ukraine Expresses Readiness For 30-Day Ceasefire Proposal With Russia
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