Suspension of Ontario’s Electricity Surcharge; US Lifts Retaliatory Tariffs, ‘On the 11th (local time), the Trump administration announced that it would withdraw its plan to impose an additional 25% tariff on Canadian steel and aluminum products. This decision came in response to Ontario temporarily suspending its electricity surcharge on exports to the US, following Trump’s threats of additional tariffs. Concerns are rising that the unpredictable nature of the Trump administration’s tariff policies is causing uncertainty in economic strategies, disrupting the stock market and trade order.’,
During an interview with CNBC, Peter Navarro, the White House trade and manufacturing advisor, confirmed that the 25% tariffs on Canadian steel and aluminum scheduled to be imposed on the 12th will not be enacted.
Previously, the Ontario government had responded to the Trump administration’s tariffs on Canadian lumber and dairy products by implementing a 25% export tax on electricity supplied to the US, starting on the 10th.
Reacting to this, President Trump announced on his social media, TruthSocial, that from the 12th, a 50% tariff would apply to Canadian steel and aluminum, adding another 25% to the worldwide tariff rate. Canada is a major supplier of foreign steel and aluminum to the US.
Ontario Premier Doug Ford, after a phone conversation with Commerce Secretary Howard Lutnick, agreed to scrap the electricity surcharge in exchange for the relaxation of steel and aluminum tariffs. Following this, Ontario announced it would temporarily suspend the electricity surcharge on US exports, and the US withdrew its plan to impose additional tariffs on Canadian steel.
The flip-flopping of the Trump administration’s tariff policies is increasing economic uncertainty, with the US stock market continuing its downward trend. Despite warnings about the adverse effects of Trump’s aggressive tariff policies, the administration appears determined to maintain its current course, stating there will be no exemptions or exceptions to the tariffs on steel and aluminum set to take effect on the 12th.
White House spokesperson Caroline Leavitt stated in a briefing on the 11th that “we are in an economic transition,” implying that, while the impact of Trump’s tariff policies might negatively affect the stock market in the short term, they are expected to bring greater long-term economic benefits.