The News
US President Donald Trump on Tuesday pledged to double planned 25% tariffs on Canadian steel and aluminum imports to 50% after Ontario announced it would hike the cost of electricity exports to three US states.
Trump also threatened to heighten planned tariffs on Canadian auto imports, which are currently due to take effect April 2.
The province’s premier, Doug Ford, had threatened to shut off the electricity supply completely, but later on Tuesday he removed the surcharge, saying he had spoken to US Commerce Secretary Howard Lutnick and that he had agreed to renewed trade talks as soon as Wednesday.
The tit-for-tat marked the latest incident in a brewing global trade war that has presented both an early political test for new Canadian Prime Minister Mark Carney and an economic challenge for the Trump administration. US markets have dipped in recent weeks, with stocks falling further Tuesday after Trump’s announcement.