White House adviser Peter Navarro said President Donald Trump no longer plans to raise tariffs on Canadian steel and aluminum imports to 50% on Wednesday.
The cancellation came six hours after Trump announced plans to double import duties on Canadian metals in response to Ontario's decision to impose a 25% tax on electricity exports to the US.
Ontario's threat to add a surcharge on electricity exports to Michigan, New York and Minnesota came in retaliation for Trump's 25% tariff on imports from Canada.
In addition, Ontario Premier Doug Ford said on Tuesday that he was stopping the surcharge after talks with US Commerce Secretary Howard Lutnick.
He had previously vowed to continue his retaliation against the US and warned that if there was a recession, Donald Trump would be the one to blame.
The move marks the latest twist in the escalating and unpredictable trade war between the US and Canada.
Trump imposed tariffs on Canada and Mexico in early February, before suspending them for a month and then reimposing tariffs and delaying some of them further. – CNBC
