Ontario Construction News staff writer
After U.S. President Donald Trump floated a 50 per cent levy on Canadian steel and aluminum Tuesday Morning, the White House confirmed a 25 per cent tariff will go into effect today. The rollback happened after Premier Doug Ford’s decision to pause the 25 per surcharge he threatened to place on electricity exports to the U.S.
In a statement, Finance Minister Dominic LeBlanc said the Government of Canada “has been clear on this issue since the beginning — should the United States move forward (Wednesday) with the imposition of tariffs on Canadian products, including steel and aluminum, we will be ready to respond firmly and proportionately. We will never relent in standing up for Canadian jobs, industries, and workers.”
Also on Tuesday, United States Secretary of Commerce and Premier of Ontario Doug Ford had a conversation about the economic relationship between the United States and Canada.
Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline.
In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota.
Earlier on Tuesday, Trump expressed his anger over Ontario’s move to make electricity more expensive, describing it as a retaliatory action against the U.S. for the anticipated tariffs. In response, Trump will double planned tariffs on Canadian aluminum and steel, from 25% to 50%.
“Based on Ontario, Canada, placing a 25% Tariff on electricity coming into the United States, I have instructed my Secretary of Commerce to add an additional 25 per cent tariff, to 50 per cent, on all steel and aluminum coming into the United States from Canada, one of the highest tariffing nations anywhere in the world,” Trump wrote on Truth Social. “This will go into effect tomorrow morning, March 12.”
Also, Trump is demanding that Canada immediately drop their “anti-American farmer tariff” of 250 to 390 per cent on various U.S. dairy products.
“I will shortly be declaring a National Emergency on electricity within the threatened area,” Trump continued. “This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada.
“If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2, the tariffs on cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!”
