The White House confirmed that a 25% tariff on steel and aluminum imported from Canada and other countries will go into effect at midnight on March 12. President Donald Trump, who previously threatened to raise the tariffs to 50%, ultimately opted against a higher increase, offering no exemptions or waivers.
“Pursuant to previous executive orders, the 25 percent steel and aluminum tariff will go into effect at midnight on March 12, with no exceptions or waivers for Canada and all of our other trading partners,” White House spokesperson Kush Desai said in a statement announcing the decision.
Trump first said today that he would double tariffs on Canadian metals in retaliation for Ontario’s decision to impose a 25% tax on electricity exported to U.S. states. The announcement sent markets tumbling, adding to the recent volatility in North American trade sectors.
But there was a breakthrough after Ontario Premier Doug Ford and U.S. Commerce Secretary Howard Lutnick confirmed that the Canadian province would suspend a planned tariff on electricity exports. The two officials are set to meet in Washington on Thursday to discuss trade relations.
Following the decision, Ford said it was important to reduce tensions, saying: “In every negotiation, there comes a point where the tensions get heated and need to come down. This was the right decision.” Shortly after, Trump indicated that he was open to reconsidering the increased tariffs.
Despite the temporary reprieve, trade tensions between the US and Canada remain high.
*This is not investment advice.
