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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A strong earthquake struck Russia's far eastern Kamchatka region, the regional governor said on Friday, prompting a series of tsunami warnings in the region, but there were for the moment no reports of damage.
At least five people were killed and one injured in an explosion on Thursday in Chaman, a town in Pakistan’s southwestern Balochistan province near the Afghan border, local media report.
Fifty-two Members of the European Parliament from 15 countries on Thursday called on the European Broadcasting Union (EBU) to bar Israel from the 2026 Eurovision Song Contest, citing the ongoing conflict in Gaza.
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AnewZ has learned that India has once again blocked Azerbaijan’s application for full membership in the Shanghai Cooperation Organisation, while Pakistan’s recent decision to consider diplomatic relations with Armenia has been coordinated with Baku as part of Azerbaijan’s peace agenda.
A day of mourning has been declared in Portugal to pay respect to victims who lost their lives in the Lisbon Funicular crash which happened on Wednesday evening.
A Polish Air Force pilot was killed on Thursday when an F-16 fighter jet crashed during a training flight ahead of the 2025 Radom International Air Show.
At least eight people have died and more than 90 others were injured following a catastrophic gas tanker explosion on a major highway in Mexico City’s Iztapalapa district on Wednesday, authorities confirmed.
Japanese conservative politician Sanae Takaichi on Thursday announced her candidacy for the leadership of the ruling Liberal Democratic Party (LDP), a move that could make her the country’s first female prime minister, Kyodo News reported.
The world’s two largest economies, the United States and China, remain mired in a trade war, with experts suggesting that a call scheduled for Friday between the two leaders is likely to address issues including the social media app TikTok, tariffs, and technology.
Germany will decide whether to support sanctions against Israel ahead of the European Union (EU) meeting in Copenhagen in October, Chancellor Friedrich Merz said on Thursday during a visit to Madrid.
World leaders are set to gather next week in New York for the 80th session of the UN General Assembly. Key issues on the agenda include a speech by US President Donald Trump, the ongoing conflicts in Gaza and Ukraine, increasing Western recognition of a Palestinian state, and nuclear tensions with I
Fifty-two Members of the European Parliament from 15 countries on Thursday called on the European Broadcasting Union (EBU) to bar Israel from the 2026 Eurovision Song Contest, citing the ongoing conflict in Gaza.
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