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.
US Secretary of Defense Pete Hegseth has denied reports by The Atlantic regarding the sharing of secret military plans for operations against the Houthi rebels in Yemen.
The Houthi group in Yemen claimed responsibility for a series of missile and drone attacks, targeting Ben Gurion airport in Israel and U.S. warships in the Red Sea.
The European Union views the Palestinian Authority as "best placed to govern Gaza," according to EU foreign policy chief Kaja Kallas, following her meeting with Palestinian Prime Minister Mohammad Mustafa in Ramallah.
U.S. President Donald Trump has indicated that he is prepared to take a more flexible stance on new tariffs for automobiles and other goods than initially expected.
A group of top Trump administration officials reportedly shared sensitive military plans over the encrypted messaging app Signal just hours before the United States launched strikes on Houthi targets in Yemen, sparking a political storm in Washington.
US Secretary of Defense Pete Hegseth has denied reports by The Atlantic regarding the sharing of secret military plans for operations against the Houthi rebels in Yemen.
The Houthi group in Yemen claimed responsibility for a series of missile and drone attacks, targeting Ben Gurion airport in Israel and U.S. warships in the Red Sea.
The European Union views the Palestinian Authority as "best placed to govern Gaza," according to EU foreign policy chief Kaja Kallas, following her meeting with Palestinian Prime Minister Mohammad Mustafa in Ramallah.
U.S. President Donald Trump has indicated that he is prepared to take a more flexible stance on new tariffs for automobiles and other goods than initially expected.
A group of top Trump administration officials reportedly shared sensitive military plans over the encrypted messaging app Signal just hours before the United States launched strikes on Houthi targets in Yemen, sparking a political storm in Washington.
In a groundbreaking study published in Cell on January 18, Chinese researchers have unveiled a novel cancer treatment that ingeniously disguises tumors as pig tissue, triggering the body’s immune system to mount a hyperacute rejection response against the cancer cells.
Sweden’s Prime Minister Ulf Kristersson stated on Thursday that purchasing U.S. weapons does not pose a security risk for his country, but emphasized the need for Europe to reduce its reliance on American defense systems. His comments come amid growing discussions within Europe.
NASA astronauts Butch Wilmore and Suni Williams completed an unexpectedly long 286-day mission on the ISS, returning to Earth aboard a SpaceX capsule after delays caused by technical issues with Boeing’s Starliner.
Russian President Vladimir Putin agreed on Tuesday to a proposal by U.S. President Donald Trump that Russia and Ukraine cease attacking each other's energy infrastructure for 30 days, the Kremlin said following a lengthy phone discussion between the leaders.
Mexican forces have dismantled a massive meth lab in Zacatecas, dealing a blow to a Sinaloa Cartel faction.
US Secretary of Defense Pete Hegseth has denied reports by The Atlantic regarding the sharing of secret military plans for operations against the Houthi rebels in Yemen.
The Houthi group in Yemen claimed responsibility for a series of missile and drone attacks, targeting Ben Gurion airport in Israel and U.S. warships in the Red Sea.
The European Union views the Palestinian Authority as "best placed to govern Gaza," according to EU foreign policy chief Kaja Kallas, following her meeting with Palestinian Prime Minister Mohammad Mustafa in Ramallah.
U.S. President Donald Trump has indicated that he is prepared to take a more flexible stance on new tariffs for automobiles and other goods than initially expected.
A group of top Trump administration officials reportedly shared sensitive military plans over the encrypted messaging app Signal just hours before the United States launched strikes on Houthi targets in Yemen, sparking a political storm in Washington.
US Secretary of Defense Pete Hegseth has denied reports by The Atlantic regarding the sharing of secret military plans for operations against the Houthi rebels in Yemen.
The Houthi group in Yemen claimed responsibility for a series of missile and drone attacks, targeting Ben Gurion airport in Israel and U.S. warships in the Red Sea.
The European Union views the Palestinian Authority as "best placed to govern Gaza," according to EU foreign policy chief Kaja Kallas, following her meeting with Palestinian Prime Minister Mohammad Mustafa in Ramallah.
U.S. President Donald Trump has indicated that he is prepared to take a more flexible stance on new tariffs for automobiles and other goods than initially expected.
A group of top Trump administration officials reportedly shared sensitive military plans over the encrypted messaging app Signal just hours before the United States launched strikes on Houthi targets in Yemen, sparking a political storm in Washington.
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