The United States has reversed its decision to impose an additional 25% tariff on Canadian steel and aluminum, following a significant policy adjustment by Ontario. The change came after Ontario Premier Doug Ford informed Commerce Secretary Howard Lutnick that the province had dropped its planned 25% surcharge on electricity exports to Michigan, Minnesota, and New York.
This reversal follows a period of escalating tensions. Earlier, President Donald Trump announced on social media a plan to enforce an extra tariff that would bring combined duties to 50%, in response to Ontario's initial tariff on electricity exports. White House spokesman Kush Desai confirmed that Ford’s decision played a pivotal role in averting the imposition of the extra metal tariffs.
Under a joint statement, Premier Ford and Secretary Lutnick revealed that Ford is scheduled to travel to Washington to meet with Lutnick on Thursday. Their discussions will focus on revitalizing the United States-Mexico-Canada Agreement (USMCA) before the April 2 deadline. This high-stakes dialogue underscores the intricate balance between trade policies and international diplomacy, and highlights the fast-moving developments affecting global trade dynamics.
Previously, broad tariffs affecting Canadian and Mexican goods had been implemented starting March 4. However, just days later, adjustments were made to exempt products meeting USMCA preferential conditions, reflecting an ongoing effort to stabilize and modernize trade relations. Data from government estimates indicate that nearly 38% of Canadian imports to the United States qualify for these exemptions.
Reference(s):
cgtn.com
