Tue, 11 Mar 2025

Tue, 11 Mar 2025 Ontario backs down after Trump escalates tariff threats

It comes after the Canadian province of Ontario said it would suspend a 25% surcharge on US-bound electricity.

* The US has imposed tariffs of 25% on Canadian steel and aluminium imports, which will take effect from March 12.
* Canada has suspended new charges of 25% on electricity sent to some northern US states, in response to Trump's tariff threats.
* Trump had threatened to double the tariffs on Canadian steel and metal imports to 50%, but ultimately did not follow through with this threat.
* The decision to suspend the tariffs is seen as a positive development, with cooler heads prevailing according to Peter Navarro, Trump's trade adviser.
* Canada has called Trump's attacks unjustified and announced retaliation, including new tariffs on $22 billion worth of US products.
* Ford had previously threatened to tax electricity exports to the US in an effort to get those tariffs removed, but has since suspended this plan.
* The move is seen as a attempt to focus discussions on the wider North American free trade deal.
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