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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Severe flooding in southwest Wales has prompted a major incident, with emergency crews rescuing dozens of people from homes, vehicles and a care facility in Carmarthenshire.
The Champions League match between Qarabağ FK and Chelsea has finished 2–2 at the Tofig Bahramov Republican Stadium in Baku.
Dutch smartphone maker Fairphone is entering the U.S. market, betting on growing demand for repairable and sustainable devices as right-to-repair legislation gains traction, according to Reuters.
The detention of Israel’s former military Advocate General has been extended until Friday as investigators probe a video leak showing soldiers allegedly abusing a Palestinian detainee.
The Champions League match between Qarabağ FK and Chelsea has finished 2–2 at the Tofig Bahramov Republican Stadium in Baku.
Brussels airport, Belgium's busiest, reopened on Wednesday morning after drone sightings during the previous night had resulted in it being temporarily closed, although some flights remained disrupted, its website said.
Israel’s top military legal officer Yifat Tomer-Yerushalmi, who resigned last week, has been arrested over the leak of a video showing soldiers brutally assaulting a Palestinian detainee at the Sde Teiman military prison.
Russia remains in constant contact with Venezuela over tensions in the Caribbean, Kremlin spokesman Dmitry Peskov was quoted as saying on Tuesday.
Chinese President Xi Jinping has pledged to boost mutual investment and deepen economic cooperation with Russia, as Moscow faces growing Western sanctions and trade pressure.
Severe flooding in southwest Wales has prompted a major incident, with emergency crews rescuing dozens of people from homes, vehicles and a care facility in Carmarthenshire.
The Champions League match between Qarabağ FK and Chelsea has finished 2–2 at the Tofig Bahramov Republican Stadium in Baku.
The detention of Israel’s former military Advocate General has been extended until Friday as investigators probe a video leak showing soldiers allegedly abusing a Palestinian detainee.
Russian President Vladimir Putin on Wednesday instructed senior officials to prepare proposals for potential nuclear weapons testing, following President Trump’s announcement last week that Washington would resume such tests.
A French court has postponed the trial of a suspect linked to the Louvre jewellery heist in a separate case, citing heavy media scrutiny and concerns about the fairness of the proceedings.
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