Ontario backs down as Trump halts new steel tariffs
Canadian steel and aluminium will not be subjected to 50 percent tariffs, the White House reported on Tuesday. Washington had threatened to raise tariffs after the authorities in Ontario announced an increase in electricity tariffs for consumers in the USA. Following Trump's threats, the plan for the increase was abandoned.
The Ontario authorities had 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 aluminium (Canada is their main supplier to the USA). 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's premier reacts to Trump's threats. "Gentleman"
- 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 aluminium from all countries "without exceptions or exemptions" will come into effect.
In response, Ontario Premier Ford did not rule out a complete cut-off of electricity supply, but ultimately complied with the US demands after a conversation with the US Commerce Secretary. Trump later stated that he appreciates Ford's gesture and called him a "strong man".
