On Tuesday, US President Donald Trump announced an increase of steel and aluminum tariffs on Canada from 25% to 50%. This decision was prompted by a 25% surcharge on electricity exports to the US, put into effect on Monday by Ontario Premier Doug Ford.
President Trump stated on Truth Social the White House’s intentions if the Canadian tariffs don’t come to a stop. The President declared he would soon announce a national emergency on electricity in the threatened area, and ultimately shut down automobile manufacturing in Canada through tariffing imported cars. He even speculated, as a possible resolve to the tariff war, “the only thing that makes sense is for Canada to become our cherished 51st state.”
However, the situation changed considerably hours after President Trump’s post. Following “productive” discussions between Premier Ford and US Secretary of Commerce Howard Lutnick, Ontario has put a suspension on the surcharge given an upcoming meeting between Ford and Lutnick in Washington DC.
According to CNBC, President Trump expressed he would “probably” decrease tariffs on Canada and is unclear on whether the 50% tariffs will go into effect. Regardless of a future decrease, the 25% tariff will go into effect on Wednesday, according to the White House.
In a joint statement between Ford and Lutnick, posted on X (Twitter), the two will discuss a renewal of the United States Mexico Canada Agreement (USMCA) before the reciprocal tariff deadline on April 2.
