The story with US and Canada trade tariffs continues to unfold as the recent Trump announcement to double import taxes on Canadian steel and aluminum has been followed by Ontario pulling back from an earlier decision to enact 25 percent electricity surcharges against the States. Overall, the moods and specifically the prices in the steel market of the US, being an important indicator for the industry globally, have been extremely volatile for a while now by the talks and moves around the trade policies between the US, Canada, and also Mexico, mostly led by the unpredictability of Trump’s announcements.
Earlier today, the Trump’s administration announced it would double the previously imposed and then postponed 25 percent tariffs against Canada’s steel and aluminum exports effective March 12 as a reaction to Canada's decision to apply a 25 percent surcharge on electricity imported by the US.
Following this announcement, the premier of Ontario, Doug Ford, suspended the surcharge, making this decision after speaking with U.S. Commerce Secretary, Howard Lutnick. "In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota," Ford stated.
Ford and Lutnik are to meet again this Thursday, March 13, to discuss a renewal of the U.S.-Mexico-Canada free trade act (USMCA) which will be ahead of any reciprocal tariffs set to go into effect on April 2.
As of the time of publication, Trump’s reaction to Ontario’s move can be considered as a relatively positive one, but yet unclear. "I’ll let you know" if 50% tariffs on Canada are going into effect, he said.