Trump Reconsiders 50% Tariff Hike on Canadian Metals After Doug Ford and Howard Lutnick's Intervention

Ontario Premier Doug Ford has suspended a planned 25% surcharge on electricity exports to Michigan, Minnesota, and New York following threats from President Donald Trump to double tariffs on Canadian steel and aluminum from 25% to 50%. The decision came after Trump's announcement on Truth Social, where he stated that the increase in tariffs was in response to Ontario's planned electricity price hike, which would have affected 1.5 million homes. Trump's threat to escalate tariffs was met with a swift response from Ford, who, after a conversation with U.S. Commerce Secretary Howard Lutnick, agreed to remove the surcharge. This move prompted Trump to reconsider his plans for doubling the tariffs on Canadian metals, although the U.S. still plans to impose a 25% tariff on all steel and aluminum imports starting March 12. White House trade adviser Peter Navarro confirmed Trump's decision to pull back on the tariff increase. The back-and-forth between the U.S. and Canada has heightened concerns about the impact of tariffs on both countries' economies and has contributed to recent stock market volatility. Trump has suggested that tariffs are essential for reshaping the U.S. economy, despite market fluctuations. Incoming Canadian Prime Minister Mark Carney has stated that his government will keep tariffs in place until the U.S. shows respect and commits to free trade, and discussions are planned to renegotiate the USMCA.