US President Donald Trump has put a hold on his plan to double tariffs on Canadian steel and metal imports, a decision that comes only hours after he threatened to raise these duties to 50 percent. However, the previously announced 25 percent tariffs will still be implemented starting March 12.
Tariff Shake-Up Following Ontario’s Move
Trump’s decision to pause the doubling of tariffs followed a strategic move by Ontario, which suspended the new 25 percent charge on electricity exports to certain northern US states. This suspension came in response to Trump’s tariff threat, and according to White House Senior Counselor Peter Navarro in a CNBC interview, “cooler heads prevailed.” The development allowed the US administration to ease off on further escalating the steel and metal import duties from Canada.
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The Ongoing US-Canada Trade War
The recent tariff adjustments are the latest flashpoint in a broader North American trade dispute. On February 1, 2025, Trump announced a 25 percent tariff on imports from Canada and Mexico, citing issues such as trade imbalance, illegal immigration, and drug trafficking. Initially scheduled for February 4, the tariffs were postponed to March 4 and later further delayed, with the additional levies now set to take effect on March 12.
In response, Prime Minister Justin Trudeau condemned the US measures as unjustified. Canada retaliated by imposing a 25 percent tariff on US goods valued at $30 billion, with plans to expand these measures to affect $125 billion worth of American products.
Impact on Bilateral Relations and Consumer Behavior
The trade skirmish has reverberated through both economies, sparking significant changes in consumer behaviors. Many Canadians have begun boycotting US products and canceling trips to the United States. Meanwhile, retaliatory moves by Canada’s Ontario province have compounded tensions, including banning US companies from government contracts and canceling a contract with Elon Musk’s Starlink, as well as threatening to cut electricity supplies to millions of US consumers.
