On another day of turbulence for U.S. markets, President Donald Trump backed off a 50% duty on Canadian steel and aluminum imports on Tuesday, escalating a threat against a significant trading partner.
In response to additional trade restrictions imposed by the province of Ontario this week, Trump announced on Truth Social that he will boost the tariff from 25% to 50%, intensifying his trade war in the morning.
However, a deal later in the day between Trump’s commerce secretary Howard Lutnick and Ontario Premier Doug Ford resulted in the province suspending its 25% electricity tax to three U.S. states.
Then Trump took action. Peter Navarro, Trump’s trade adviser, stated on CNBC that “cooler heads prevailed” and that the administration would adhere to its initial proposal to impose 25% tariffs on all imported steel and aluminum, regardless of the nation of origin.
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According to a joint statement by U.S. and Canadian authorities, Lutnick and Ford will meet with the U.S. trade representative on Thursday in Washington, D.C., to discuss modifications to the U.S.-Mexico-Canada Agreement. The negotiations take place before Trump threatens to impose retaliatory tariffs on all U.S. trading partners on April 2.
Because the United States imports more steel and aluminum from Canada than from any other country, the new 50% tariffs on these goods were anticipated to have a negative impact on American consumers and businesses, according to BourseWatch.
