Canadian steel avoids tariffs as Ontario retreats on electricity
Canadian steel and aluminum will not be subjected to 50 percent tariffs, the White House reported on Tuesday. Washington threatened to increase tariffs after the Ontario government announced a hike in rates for electricity supplied to consumers in the U.S. Following Trump's threats, the planned increase was abandoned.
The Ontario government announced plans for a 25 percent tariff on electricity exports for 1.5 million consumers in New York, Michigan, and Minnesota just a few hours earlier.
In response, Trump announced the implementation of 50 percent tariffs on Canadian steel and aluminum (Canada is their main supplier to the U.S.). The president also announced the implementation of tariffs that would "permanently shut down" the Canadian automotive industry.
- They will pay a financial price for this so big that it will be read about in History Books for many years to come - Trump declared.
Ontario premier reacts to Trump's threats. "Strong man"
- President Trump has once again used the leverage of the American economy, which is the best and biggest in the world, to deliver a win for the American people. Pursuant to his previous executive orders, a 25% tariff on steel and aluminum with no exceptions or exemptions will go into effect for Canada and all of our other trading partners at midnight, March 12th - said Kush Desai, Deputy White House Press Secretary, in a statement.
He added that the previously announced 25 percent tariffs on steel and aluminum from all countries "without exceptions or exemptions" will come into effect.
In response, Ontario Premier Ford did not rule out a complete cutoff of electricity supply, but ultimately complied with the U.S. demands after a conversation with the U.S. Commerce Secretary. Trump later stated that he appreciates Ford's gesture and called him a "strong man".
