Trump Withdraws Tariff Threat on Canada After Ontario Drops Electricity Charges

March 12, 2025— Former U.S. President Donald Trump has withdrawn a proposed tariff hike on Canadian steel and aluminium after Ontario suspended planned electricity surcharges on U.S. exports.

Trump initially threatened to double tariffs from 25% to 50% in response to Ontario’s 25% surcharge on electricity exports to U.S. states. According to AP News source, Ontario Premier Doug Ford reversed the surcharge, leading Trump to maintain the existing 25% tariff instead (AP News).

NPR also reporting that “While the stock market does not necessarily track overall economic health, other indicators have shown weakness.” The decision comes amid ongoing trade policy adjustments affecting North American industries.

Further developments in U.S.-Canada trade policy are expected as both sides navigate economic and regulatory challenges.