On March 11, President Donald Trump canceled a threat to impose an additional 25% tax on Canadian steel and aluminum products, in addition to the 25% tax rate, which was scheduled to take effect on March 12.
This is the latest development in the rapidly escalating trade war between the US and Canada.
The decision reversal comes after Prime Minister Ontario Doug Ford and US Secretary of Commerce Howard Lutnick announced an agreement to postpone the 25% fee for Ontario, Canada's electricity for US customers that the Ford Prime Minister had warned would be applied.
Ford's president and Minister Lutnick issued a joint announcement to temporarily suspend the 25% electricity fee. The statement said that the lifting of the surcharge comes along with an agreement to hold a meeting at the White House on March 13 to discuss the extension of the trade deal between the US and Canada.
President Trump has threatened to double Canada's steel and aluminum tariffs after President Ford threatened to increase electricity surcharges.
Even with the new deal, the initial 25% tax rate on steel and aluminum imports from all countries will still come into effect on March 12 as planned, according to White House spokesman Kush Desai.
ABC News pointed out that developments on March 11 marked a slight cooling of the trade war between the US and Canada after the US imposed a 25% tariff on imports from Canada. Almost immediately, Canada imposed a 25% retaliatory tax on $30 billion worth of goods from the US.
