Washington, March 12, 2025 – The Europe Today: U.S. President Donald Trump has decided to suspend plans to double tariffs on Canadian steel and metal imports to 50%, just hours after initially threatening the sharp increase. The 25% tariffs, however, will still go into effect on March 12, according to media reports.
This decision follows the Canadian province of Ontario’s move to suspend new charges of 25% on electricity exports to some northern U.S. states, a move made just hours after Trump’s tariff threats. The exchange of trade-related actions marks the latest episode in an ongoing trade conflict between the U.S. and Canada that has raised concerns over potential economic damage to both nations.
“Cooler heads prevailed,” said Peter Navarro, a trade adviser to President Trump, in an interview with CNBC, confirming that the president would not proceed with the proposed tariff increases.
Trump’s administration had previously imposed a blanket 25% tariff on goods from both Canada and Mexico, which was later partially softened with temporary exemptions for certain items. The move was framed by Trump as a response to issues related to drug trafficking and migration across the U.S.-Mexico border.
On March 12, Canada will face 25% tariffs on its steel and aluminum exports, after Trump announced the end of exemptions granted to certain countries, including Canada. In retaliation, Canada has outlined plans to impose tariffs on approximately C$30 billion ($22 billion) worth of U.S. products.
The situation escalated further when Ontario Premier Doug Ford announced the suspension of the electricity tariffs, emphasizing the need for a cooling-off period in the negotiations. Ford remarked that suspending the new charges was the “right decision” to allow for focused discussions on the broader North American Free Trade Agreement (NAFTA) negotiations. Ford also thanked U.S. Commerce Secretary Howard Lutnick for facilitating dialogue.
In his social media post early on Tuesday, Trump had directly linked his tariff threat to Ford’s decision regarding electricity, also reiterating his long-standing criticism of Canada for relying on the U.S. for military protection. In a provocative statement, Trump suggested that if Canada were to join the United States as the 51st state, tariffs and other trade barriers would be eliminated entirely.
The White House framed the resolution of this conflict as a victory for the U.S., claiming that Trump had successfully leveraged the strength of the U.S. economy to secure a favorable outcome for American interests.
Tariffs are taxes applied to goods imported from other countries, with the responsibility for payment resting on the companies that bring these goods into the U.S.
