U.S. President Donald Trump reversed course on Tuesday, scaling back a planned 50% tariff on Canadian steel and aluminum just hours after announcing the sharp hike, following a retaliatory electricity surcharge threat from Ontario.
The abrupt reversal came after Ontario Premier Doug Ford threatened to impose a 25% surcharge on electricity supplied to over 1 million U.S. homes unless Trump dropped all tariff threats against Canadian exports.
Ford agreed to suspend the surcharge and meet U.S. Commerce Secretary Howard Lutnick in Washington on Thursday. The White House then confirmed that only the originally planned 25% tariffs on all imported steel and aluminum would take effect on March 12.
White House spokesperson Kush Desai framed the move as a strategic victory, stating that Trump leveraged U.S. economic power to protect domestic interests.
The S&P 500 index briefly dropped 10% from its February 19 high, before recovering after Ford’s policy shift and Ukraine’s acceptance of a 30-day ceasefire.
Businesses and investors remain on edge as Trump hints at further tariff increases, particularly targeting Canada’s auto exports from April 2.
U.S. industries warn of inflation risks, as aluminum prices soared to record highs above $990 per metric ton.
Consumer confidence has weakened, with a New York Fed survey showing growing concerns over inflation and job security.
Trump’s latest tariff escalation comes as Canada transitions power from Justin Trudeau to incoming Prime Minister Mark Carney. The Canadian government has yet to formally respond to Trump’s trade maneuvers.
Meanwhile, Alberta officials are exploring options to de-escalate tensions, while Mexico has refrained from retaliation after Trump delayed planned tariffs on its exports.
"This is what a trade war looks like—tit-for-tat escalation that can quickly spiral into economic damage for both sides," said Josh Lipsky, senior director at the Atlantic Council’s GeoEconomics Center.
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Russian authorities said 11 people, including four children, had been killed by Ukraine in an overnight attack on a holiday camp, accusing Kyiv on Saturday of deliberately targeting civilians.
Iran will halt its own attacks as long as the United States maintains its pause on strikes, but Tehran remains sceptical of U.S. intentions, a senior Iranian source told on Sunday.
Kazakhstan's President Kassym-Jomart Tokayev called on Saturday for Russia and Ukraine to freeze the conflict and return to peace talks, saying a negotiated settlement remained possible despite the entrenched positions of both sides.
Marvel Studios used its return to San Diego Comic-Con to reveal several major projects, including a new Ghost Rider film starring Ryan Gosling and the long-awaited Black Panther 3.
U.S. President Donald Trump says Israeli Prime Minister Benjamin Netanyahu will visit Washington next week as tensions continue to rise across the Middle East.
Belgium recorded the highest excess mortality rate in Europe during the heatwave that swept across the continent in late June, according to EuroMOMO data cited by the Belgian public health institute Sciensano.
Indonesian President Prabowo Subianto's approval rating has fallen to 51.1% in July 2026, according to a new poll, with growing concern over the country's economic situation emerging as the main driver of declining public support.
Tehran's Foreign Minister Abbas Araghchi has warned of retaliation, after a Ukrainian attack on an Iranian commercial ship in the Caspian Sea killed a sailor on Saturday.
Officials in Russia and Ukraine reported new civilian casualties on Monday after a series of air attacks hit cities on both sides of the war
Former South Korean president Yoon Suk Yeol has been given a suspended 18-month prison sentence after being found guilty of violating election law during his 2022 presidential campaign.
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