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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The co-pilot of Israel bound flydubai flight attempted to carry out a “terrorist attack” with an axe during the flight, the United Arab Emirates prosecutor general said on Saturday.
Hammam al-Hammami, the Flydubai co-pilot accused of stabbing the captain of an Israel-bound flight on Wednesday in a suspected terrorist attack, was banned from flying by Oman over concerns about his radical views, U.S. media reported on Friday, citing people familiar with the matter.
Two Iranian nationals have been charged in Britain with preparing a suspected terrorist attack targeting the Jewish community in northern England, police said on Friday (2 October).
A major bridge across the Dnipro river in Kyiv was hit in a Russian air attack on Saturday, the city's mayor, Vitali Klitschko said, as strikes on the capital's infrastructure continue.
Azerbaijan’s President Ilham Aliyev warned against interference from outside actors in remarks at the 8th Congress of the New Azerbaijan Party in Baku on Friday 2 October.
Brazilians are voting on Sunday (04 October) in the first round of a closely contested general election, following a campaign shaped by corruption scandals, economic concerns and accusations of foreign interference.
The sound of air raid sirens and explosions rang out in Ukraine's capital Kyiv on Sunday (4 October) as German Chancellor Friedrich Merz arrived for a visit to show support for President Volodymyr Zelenskyy amid escalating Russian attacks.
An alleged 2024 rape case involving seven former members of Cornell University’s Chi Phi fraternity has been reopened after the alleged victim, known anonymously as Jane Doe in court documents, filed a civil lawsuit accusing the men of drugging and gang-raping her.
Bosnia and Herzegovina is voting in general elections on Sunday (4 October) that could shape the country’s stalled path towards European Union membership, as well as the competing influence of the United States and Russia in the Western Balkans.
Maisa, a 17-year-old in a deprived Paris suburb who aspires to be an English teacher, joined tens of thousands of other students and their supporters this week in protests that spread across France over dilapidated schools, classroom overcrowding and teacher shortages.
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