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.
"Change is coming to Iran" according to U.S. Senator Lindsey Graham during an interview with Fox News on Tuesday (6 January). He warned Iran that "if ...
Open-source intelligence (OSINT) sources reported a significant movement of U.S. military aircraft towards the Middle East in recent hours. Dozens of ...
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Open-source intelligence (OSINT) sources reported a significant movement of U.S. military aircraft towards the Middle East in recent hours. Dozens of U.S. Air Force aerial refuelling tankers and heavy transport aircraft were observed heading eastwards, presumably to staging points in the region.
Türkiye is prepared to “assume responsibility” for the security of the Black Sea once a peace agreement is signed between Russia and Ukraine, Turkish Foreign Minister Hakan Fidan has said.
Diplomatic tensions between Tokyo and Beijing escalated as Japan slams China's export ban on dual-use goods. Markets have wobbled as fears grow over a potential rare earth embargo affecting global supply chains.
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 7th of January, covering the latest developments you need to know.
Germany’s foreign intelligence service secretly monitored the telephone communications of former U.S. President Barack Obama for several years, including calls made aboard Air Force One, according to an investigation by the German newspaper Die Zeit.
President Ilham Aliyev said 2025 has politically closed the Armenia-Azerbaijan conflict, as a Trump-era reset in U.S. ties, new transport corridors and a push into AI, renewables and defence production reshape Azerbaijan’s priorities.
Diplomatic tensions between Tokyo and Beijing escalated as Japan slams China's export ban on dual-use goods. Markets have wobbled as fears grow over a potential rare earth embargo affecting global supply chains.
Protests continued into another day in Iran, with crowds returning to the streets despite mounting pressure from the authorities. By scale and spread, the unrest has entered its most significant phase so far.
Shares of major U.S. oil and energy companies surged on Monday even as crude prices showed little movement, revealing a growing divergence between energy equities and the underlying commodities market.
Türkiye is prepared to “assume responsibility” for the security of the Black Sea once a peace agreement is signed between Russia and Ukraine, Turkish Foreign Minister Hakan Fidan has said.
"Change is coming to Iran" according to U.S. Senator Lindsey Graham during an interview with Fox News on Tuesday (6 January). He warned Iran that "if you keep killing your people for wanting a better life, Donald Trump is going to kill you."
The United States says it's set to receive a shipment of crude oil from South America following a significant diplomatic and economic arrangement brokered by the White House involving sanctioned assets.
Diplomatic tensions between Tokyo and Beijing escalated as Japan slams China's export ban on dual-use goods. Markets have wobbled as fears grow over a potential rare earth embargo affecting global supply chains.
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 7th of January, covering the latest developments you need to know.
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