The United States’s trade conflict with Canada took a series of startling goes on Tuesday with challenges, posturing, and what appeared to be an subsequent lowering of heat over power surcharges.
The day started with President Donald Trump slapping a 25 % levy against steel and aluminum imported from Canada, on top of a previous 25 % tariff, in response to Ontario Premier Doug Ford announcing a 25 % surcharge on electricity to the U. S.
Trump’s steps led both Ford and incoming Prime Minister Mark Carney to dig their feet in publicly, but by Tuesday afternoon, Ford announced the taxes were suspended, and Trump praised the American president as a” solid person” in response.
” He has called and he said he’s not going to accomplish that”, Trump said of Ford, as Elon Musk stood by in a bunch with investigators. ” And it would have been a really bad thing if he did. He’s not going to do that, but I respect that. But we were only informed that he’s not going to do that”.
” He was a gentleman”, the leader said in a conciliatory tone about the phone call he had with the top.
Importantly, when asked if the 50 % tariffs against Canada were also set to take place, Trump said, “I’ll let you know about that”.
Before Trump’s opinions, Ford, the Ontario top, issued a joint declaration with U. S. Commerce Secretary Howard Lutnick in which they disclosed a “productive chat” and a Thursday conference that will take place in Washington.
For the moment, the statements have ratcheted down boiling tensions between the two countries after an earlier 25 % tariff on Canada was set to go into effect Wednesday at midnight.
Just minutes earlier, White House press secretary Karoline Leavitt had qualified her answer when asked if Canada is a” close ally”.
” They are a neighbor, they are a partner, they have always been an ally”, she said during Tuesday’s briefing. ” Perhaps they are becoming a competitor now”.
Leavitt said Trump and Carney have not held a conversation amid the trade war. ” But certainly ,]Trump’s ] phone is always open to leaders who wish to speak with him”, she added.
Just before the briefing, Carney took to social media to defend Canada and push back against Trump’s threats.
” President Trump’s latest tariffs are an attack on Canadian workers, families, and businesses”, Carney wrote Tuesday afternoon on X. ” My government will ensure our response has maximum impact in the US and minimal impact here in Canada, while supporting the workers impacted.
” My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade,” Carney continued.
The statement by Carney, a former central banker chosen to lead Canada on Sunday, signaled the national government is aligned with individual provinces affected by Trump’s trade war. Trump announced the additional levy on steel and aluminum after Ford imposed a 25 % surcharge on electricity exports to the U. S.
The tit-for-tat tariffs are part of an escalating impasse between the two countries as Trump demands further action to stem the flow of fentanyl into the U. S. Justin Trudeau, the outgoing Canadian prime minister, announced 25 % retaliatory tariffs on the U. S.  , after Trump decided to move ahead with a 25 % levy against Canada and Mexico on March 4.
Trump later announced a one-month exemption for certain goods that fall under the U. S. Mexico-Canada Agreement, the North American free trade agreement Trump negotiated during his first administration.
But tensions remain between the two countries, with Ford defending his actions during an interview with MSNBC before the surcharge suspension was announced.
” I stress this is not the American people, Canadians know it,” Ford said”. And if we go into a recession, it’s self-made by one person, it’s called President Trump’s recession, which shouldn’t be this way. We should be booming, both countries right now.”
TRUMP SLAPS 25 % ADDITIONAL RETALIATORY TARIFFS ON CANADA
Leavitt said at the press briefing that Ford had made an” egregious and insulting comment threatening to shut down electricity for the American people.”
” The president saw that and has an obligation and a responsibility to respond accordingly and represent the interests of the American people,” Leavitt said, though she declined to detail the exact actions Trump would take if electricity is shut off to three states that rely on Canadian energy — Minnesota, New York, and Michigan.
