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.
