Washington, 12 March 2025 (dpa/MIA) - US President Donald Trump has withdrawn his threat to double tariffs on Canadian steel and aluminium, following the resolution of a trade dispute between the Canadian province of Ontario and the United States.

Ontario had announced a 25% surcharge on electricity exports to several US states as part of a broader trade conflict. In response, Trump expressed outrage and threatened an additional 25% tariff on Canadian metals, which would have raised tariffs to a total of 50%.

"I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD," Trump posted on his Truth Social network.

In February, Trump implemented tariffs of 25% on steel and aluminium imports, intended to apply generally to imports from all other countries, which are expected to come into effect on Wednesday.

However, by the end of Tuesday, tensions had eased. Trump's trade minister, Howard Lutnick, and Ontario Premier Doug Ford held productive talks, the ministry said. They agreed to meet in Washington on Thursday to discuss the United States-Mexico-Canada Agreement (USMCA). In exchange, Ontario agreed to suspend the 25% surcharge on electricity exports to the US states of Michigan, New York and Minnesota.

A White House spokeswoman told dpa that no additional tariffs would be imposed on Canada. Instead, the previously announced 25% tariffs on steel and aluminium would take effect at midnight (0400 GMT Wednesday) as planned, applying to Canada and other trading partners with no exceptions.

The spokeswoman added that Trump had once again used the power of the US economy to secure a victory for the American people.

According to recent data, around a quarter of the steel used by the industrial sector in the US is imported. For aluminium, that figure is over 40%. The percentage is significantly higher for secondary aluminium, which is derived from recycled material.

Economists expect that higher import costs will increase production costs for many US industrial firms. Customers are likely to face price increases and the competitiveness of firms abroad could decline.

Since taking office, Trump's tariff policy has been inconsistent. For instance, he partially suspended tariffs on goods from Canada and Mexico shortly after their introduction – while simultaneously threatening new punitive measures.

Photo: EPA