WASHINGTON, D.C. – Ontario, Canada, has scrapped a planned 25% surcharge on electricity sold to the U.S. following an announcement by former President Donald Trump that he would impose a 50% tariff on Canadian steel and aluminum imports, according to The Associated Press. However, later reports indicated that Trump appeared to soften his stance on the higher tariff.
Trump initially made the tariff announcement on his social media platform, Truth Social, stating:
“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, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING, March 12th.”
Following discussions between Ontario Premier Doug Ford and U.S. Commerce Secretary Howard Lutnick, Ontario agreed to drop the electricity surcharge, with Ford expressing confidence that Trump would withdraw the threat of increased tariffs on metals.
By Tuesday evening, Trump suggested he would “probably” reduce the tariffs, according to NBC News.
The tariff tensions contributed to a sharp drop in the stock market on Monday over fears of a potential recession. However, as both sides appeared to de-escalate the dispute on Tuesday, markets rebounded, NBC News reported.
Trump has framed tariffs on Canada, Mexico, and China as tools to curb illegal immigration and fentanyl trafficking, arguing that the U.S. has long been disadvantaged in global trade.
In a surprising twist, Trump also reignited his long-running suggestion that Canada should become part of the United States, stating:
“The only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all Tariffs, and everything else, totally disappear.”
While Trump’s comment appeared to be rhetorical, it added another layer to the ongoing trade tensions between the two countries.
