U.S. President Donald Trump has hinted at reconsidering his decision to double tariffs on Canadian steel and aluminum imports following Ontario’s suspension of its electricity surcharge on three U.S. states.
The announcement marks a potential de-escalation in the ongoing trade tensions between the two North American neighbors. The Premier of Ontario, Doug Ford, announced the suspension of a 25% surcharge on electricity exports to Michigan, New York, and Minnesota after what he described as “productive” talks with U.S. Commerce Secretary Howard Lutnick. The surcharge had been introduced as a retaliatory measure against earlier U.S. tariffs on Canadian goods.
In response, Trump acknowledged the gesture, stating, “I respect that decision. It would have been a very bad thing if they continued, but they’ve chosen not to, and that’s a good step forward.”
Earlier this week, Trump had announced plans to increase tariffs on Canadian steel and aluminum from 25% to 50%, citing Ontario’s electricity surcharge as a provocation. The move had sparked concerns about further economic strain on the already tense U.S.-Canada trade relationship, with potential repercussions for industries reliant on cross-border supply chains.
While Trump has not yet formally withdrawn the tariff increase, his comments suggest a willingness to ease tensions. “We’re looking at the situation closely,” he said, adding that any decision would prioritize American interests while acknowledging the importance of maintaining strong ties with Canada.
The suspension of Ontario’s electricity surcharge and Trump’s softened stance on tariffs offer a glimmer of hope for improved trade relations between the U.S. and Canada. However, the situation remains fluid, with both sides navigating a delicate balance between economic interests and political pressure.