Washington [US], March 12: US President Donald Trump on March 11 changed his mind about not doubling tariffs on steel and aluminum imported from Canada to 50%, after Canada withdrew its plan to increase a 25% surcharge on electricity exported to the US.
President Trump threatened to impose tariffs on Canadian steel and aluminum after Ontario Premier Doug Ford announced a 25% surcharge on electricity supplied by Canada's most populous province to more than 1 million American households unless Trump eliminated all tariffs on Canadian goods entering the U.S. market.
Faced with the White House's threat to double tariffs on Canadian steel and aluminum to 50 percent, Premier Ford agreed to suspend the surcharge and is scheduled to meet with U.S. Commerce Secretary Howard Lutnick in Washington on March 13.
The White House later announced that the official tariff rate on steel and aluminum products imported from Canada will remain at 25% as planned, effective from March 12, with no exceptions or exemptions.
The tense back-and-forth between the United States and Canada is adding to turmoil in financial markets already reeling from President Trump's tariff decisions.
After falling sharply when President Trump announced on Truth Social that he would double tariffs on Canadian steel and aluminum, stock markets rebounded after Premier Ford delayed the increase in electricity surcharges and Ukraine agreed to a 30-day ceasefire.
The S&P 500 index on March 11 fell to 5,528.41 points, or 10% compared to when it reached 6,144.15 points at the market close on February 19.
US stocks have been hit hard in recent weeks, with US indexes losing nearly $5 trillion in market value due to the US trade war with major trading partners.
Source: Thanh Nien Newspaper
