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A senior economic adviser to United States President Donald Trump says a plan to double tariffs on Canadian steel and aluminium imports to 50 percent has been halted, as the trade war between the two countries continues to sow confusion and uncertainty, Al Jazeera reported.

In an interview with CNBC on Tuesday afternoon, Peter Navarro said the increased US tariffs would not come into effect as planned on Wednesday.

The announcement came just hours after the premier of the Canadian province of Ontario, Doug Ford, said he was temporarily suspending a surcharge on electricity exports to some US states.

That surcharge is what Trump earlier said had prompted his decision to impose the 50 percent tariffs on Canadian steel and aluminium – up from the 25 percent levies still set to come into effect on Wednesday.

“Just tamp it down, please, over there,” Navarro said in his CNBC interview, addressing Canada.

The back-and-forth highlights the unpredictable nature of Trump’s “America First” economic policy, and the lack of clarity around his announcements on tariffs.

US-Canada relations have plummeted amid Trump’s push to impose steep tariffs on a range of Canadian goods and his repeated threats to annex the country.

Some US tariffs against Canada came into effect last week as part of what the US president has said is an effort to balance the countries’ trade relationship. But the Canadian government has rejected the measures as “unjustified” and unveiled retaliatory levies, according to Al Jazeera.

The tariffs have spurred anger and frustration in Canada over the past several weeks.

Many Canadians are boycotting US products and calling on the government to reduce the country’s economic dependence on the US.

Ford, the Ontario premier, announced on Monday that his government would impose a 25 percent surcharge on electricity exports to the US states of Michigan, Minnesota and New York.

Ford – who has taken a strong line against Trump’s policies – told reporters that Ontario’s electricity powers 1.5 million US homes and businesses in those US states.

The surcharge, the premier said, would cost families and businesses as much as $276,000 (400,000 Canadian dollars) per day.

“Let me be clear, I will not hesitate to increase this charge. If necessary, if the United States escalates, I will not hesitate to shut the electricity off completely,” Ford had said.

On Tuesday, Mark Carney, the new leader of Canada’s governing Liberal Party and the country’s next prime minister, also slammed Trump’s plan to increase tariffs on steel and aluminium as “an attack on Canadian workers, families, and businesses”.

“My government will ensure our response has maximum impact in the US and minimal impact here in Canada, while supporting the workers impacted,” Carney, who is set to be sworn in as prime minister in the coming days, wrote on social media.

“My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade.”

The US stock market plunged this week amid the uncertainty around Trump’s economic and trade policies, Al Jazeera reported.

Canada and the US are major trading partners, with the US importing $412.7bn from its northern neighbour in 2024, according to the Office of the US Trade Representative. US exports to Canada that same year totalled $349.4bn.

The US presidency is widely respected for its authority and global influence, given the nation’s military strength, economic leadership and role in promoting democracy. However, the past decade has been a pivotal period for American democracy and its core values. Donald Trump’s presidency ignited a powerful political movement, deepening political divisions. He strategically expanded his influence using misinformation, conspiracy theories, personal attacks, financial resources and nationalist rhetoric. His targets extended beyond political opponents to include government institutions, the judiciary, the legislature, foreign allies, the press, international organizations and the business community

Many analysts describe Trump’s Republican Party as an authoritarian populist movement seeking to centralize power within the presidency. Concerns have grown both domestically and internationally about whether Trump aligns with fascist ideology. While the debate over whether he is a fascist leader continues, he undeniably exhibits several fascist characteristics. At the very least, Trump is an ultranationalist and a populist.

According to Merriam-Webster, “Fascism is a populist political philosophy, movement or regime that exalts nation and often race above the individual, is associated with a centralized autocratic government headed by a dictatorial leader and is characterized by severe economic and social regimentation and forcible suppression of opposition.” Trump’s rise to power relied on populist rhetoric, framing the political system, media and foreign policy as corrupt and dominated by left-wing elites. His administration attacked foreign allies, institutions, political opponents and immigrant communities, reflecting an authoritarian governance style. His "America First" agenda frequently sought to diminish the influence of sovereign nations, including US allies. For example, Trump referred to Canada as the "51st state" and called its Prime Minister a "governor," which many saw as an attempt to intimidate a foreign leader. Domestically, he aligned with billionaires like Elon Musk, leveraging their influence to undermine government agencies and threaten federal employees.

The Council on Foreign Relations outlines five stages through which fascism rises to power: emerging from public disillusionment, establishing legitimacy as a political movement, gaining power through right-wing partnerships, using power to dominate institutions and implementing radical reforms. Trump has demonstrated all five stages in his pursuit of power. He capitalized on public dissatisfaction with war, economic disparity, immigration, bureaucracy and media bias. He also discredited the US judicial system, particularly when facing criminal indictments, portraying his legal troubles as political persecution. His ability to harness these grievances reshaped the Republican Party into a populist right-wing movement.

Many Republican leaders have avoided acknowledging key issues such as the January 6 insurrection, the legitimacy of the 2020 election and international conflicts like those in Ukraine and Gaza, reinforcing Trump’s influence over the party. He has also shown a willingness to collaborate with authoritarian and right-wing leaders worldwide, signaling a preference for figures who challenge democratic norms. His alignment with wealthy elites and tech giants reflects a tendency to prioritize the interests of billionaires over working-class Americans. For instance, he advocated for tax cuts benefiting the wealthy while proposing reductions in social security and medicare that disproportionately affect lower-income Americans. His partnerships with corporate leaders, particularly in the tech sector, allowed him to push for deregulation and policies that benefit the elite while weakening protections for the general public—hallmarks of authoritarian economic control.

Trump repeatedly sought to dominate institutions, including the judiciary. He openly disregarded court rulings that went against his interests and expressed a desire to reshape government structures to serve his agenda. Trump’s push for radical reforms, often benefiting his donors and allies, demonstrates his intent to consolidate power beyond legal norms. While the extent of his success remains uncertain, he has shown a clear willingness to challenge democratic systems and test the boundaries of his authority.

While Trump may not fully succeed in becoming a fascist leader, he undeniably embraces fascist characteristics and has implemented policies that reflect authoritarian tendencies. Before the 2020 election, Cornell University professor Isabel Hull argued that Trump was “not principled enough to be a fascist” and labeled him a “nativist-populist.” However, since then, Trump has intensified his ultra-nationalist and populist approach.

His desire to suppress opposition—though limited by American democratic norms—manifests in policies targeting immigrants, political adversaries and critics. While he may not be able to completely dismantle democracy, his leadership has undeniably pushed the US toward authoritarianism. The American people may ultimately prevent Trump from achieving full-fledged fascism, but his political movement has already demonstrated alarming authoritarian tendencies that cannot be ignored.

Donald Trump’s presidency has significantly reshaped American politics, fostering a populist movement that challenges democratic norms and institutions. While the debate over whether he is a fascist leader continues, he undeniably exhibits key fascist characteristics, including ultranationalism, authoritarian rhetoric and efforts to consolidate power. His attacks on political opponents, government institutions, the judiciary, the media and foreign allies align with historical patterns of authoritarianism. By capitalizing on public grievances, forming alliances with right-wing elites, and pushing policies that favor the wealthy while undermining democratic institutions, Trump has shifted American governance toward an increasingly authoritarian trajectory. Although the US system of checks and balances has constrained his power, his influence continues to grow, posing an ongoing challenge to the resilience of American democracy.

Canada’s next prime minister met with outgoing prime minister Justin Trudeau on Monday and vowed a quick transition, Associated Press reported.

Mark Carney said he had a long meeting with Trudeau in which they discussed U.S.-Canada relations, national security issues and the timing of the handover in power.

“That transition will be seamless and it will be quick,” said Carney, adding there would be an announcement soon.

Carney, a two-time central bank chief, will become prime minister after the governing Liberal Party elected him its leader Sunday in a landslide vote with 85.9% support.

Carney, 59, replaces Trudeau who announced his resignation in January but remains prime minister until his successor is sworn in.

Carney is widely expected to trigger a parliamentary election in the coming days or weeks amid U.S. President Donald Trump’s sweeping tariff and annexation threats. Or the opposition parties in Parliament could force one with a no-confidence vote later this month, according to the Associated Press.

Carney is a former Goldman Sachs executive with no experience in politics.

He navigated crises when he was the head of the Bank of Canada from 2008, and then in 2013 when he became the first non-citizen to run the Bank of England since it was founded in 1694. His appointment won bipartisan praise in the U.K. after Canada recovered from the 2008 financial crisis faster than many other countries. He helped managed the worst impacts of Brexit in the U.K.

The opposition Conservatives had hoped to make the election about Trudeau, whose popularity declined as food and housing prices rose and immigration surged.

But Trump’s trade war and his talk of making Canada the 51st U.S. state have have infuriated Canadians, who are booing the American anthem at NHL and NBA games. Some are canceling trips south of the border, and many are avoiding buying American goods when they can.

The surge in Canadian nationalism has bolstered the Liberal Party’s chances in a parliamentary election, and Liberal showings have been improving in opinion polls.

“There is tremendous energy in the Liberal caucus,” Carney said. “This is a united party full of energy.”

Trump has postponed 25% tariffs on many goods from Canada and Mexico for a month, amid widespread fears of a broader trade war. But he has threatened other tariffs on steel, aluminum, dairy and other products.

Carney said Sunday night that Canada will keep its initial retaliatory tariffs in place until “the Americans show us respect.” He said Canada didn’t start the fight but would win, Associated Press reported.

Billionaire Michael Bloomberg, a former New York City mayor, called the U.S.-Canada relationship vital and said there’s no one more prepared to strengthen it than Carney.

“Mark is one of the smartest, most capable, and steady-handed leaders I know,” Bloomberg posted on X.

US Secretary of State Marco Rubio has said that the United States was cancelling 83 percent of programs at USAID, as the Trump administration guts spending not aligned with its “America First” agenda.

In Nepal too, hundreds of projects launched under the USAID have faced closure. At the same time, the future of a $500m grant under the Millennium Challenge Corporation (MCC) hangs in the balance as the US is yet to make a decision about it. The USAID aid cut has significantly hit various sectors in Nepal such as health and education, human rights and gender. Following the USAID cut, the Nepal government is approaching India, China and other countries to fill the gap. Senior officials at the Ministry of Finance are exploring ways to prevent the possible impact on Nepal’s critical areas such as health, education, agriculture and support for minority groups. 

The USAID distributes humanitarian aid around the world, with health and emergency programs in around 120 countries, and critics warn that any major downsizing of its operations will affect millions of people. “After a six week review, we are officially cancelling 83 percent of the programs at USAID,” Rubio said on social media platform X. “The 5,200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States.”

US President Donald Trump, who has called for the agency to be shut down, signed an executive order in January demanding a freeze on all US foreign aid to allow time to assess overseas expenses. Rubio said the remaining 1,000 programs would be administered by the State Department, delivering a seemingly fatal blow to USAID—where most workers have been placed on leave or fired since January.

Notably, Rubio on Monday thanked the Department of Government Efficiency (DOGE), which billionaire Elon Musk is leading in a drive to cut federal spending and jobs. Musk, whom Rubio has reportedly criticized over his aggressive belt-tightening, responded on X describing the USAID cuts as “tough, but necessary.”

The State Department had announced last month its intention to cut 92 percent of USAID contracts, identifying 5,800 grants to be eliminated. Trump and his allies have argued that foreign assistance is wasteful and does not serve US interests, but aid groups argue much of the assistance supports US interests by promoting stability and health overseas.