Following earlier reports that the Trump administration would impose doubled 50 percent tariffs on Canadian exports of steel and aluminum tomorrow in reaction to an earlier decision by the Canadian government to impose 25 percent increases in electricity prices to Michigan, Minnesota and New York, administration officials said later today that US will drop the additional tariffs against Canada, defaulting to the original 25 percent tax on metals scheduled to go into effect tomorrow, March 12.
In reaction to media questions following today’s Canadian concessions, media reports indicate Senior Counselor for Trade and Manufacturing, Peter Navaro said “Trump’s threat of higher tariffs won’t be going into effect.”
“It may go higher,” Trump said later at a business round-table meeting concerning tariffs following the most recent announcements. “The higher it goes,” Trump said referring to companies moving their production to the US to avoid tariffs, “the more likely they are to build (in the US).”
It was also announced that on Thursday, March 13, US Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford will meet to renegotiate the free trade treaty known as USMCA.
Markets initially fell sharply following Trump’s Truth Social post announcing 50 percent Canadian tariffs though losses were later stemmed following statements from Lutnick and Ford. The Dow pared losses but still fell after Trump said in comments outside the White House Tuesday that he “didn’t care what happened to the stock market.”
The Dow closed the day down 478 points, or 1.1%. The broader S&P 500 fell 0.8% The Nasdaq Composite, fell another 0.2%.
