Trump: Won't bend on Canada metals or April 2 tariffs

Trump: Won't bend on Canada metals or April 2 tariffs

In a surprising turn of events, President Donald Trump has suspended his plan to impose additional 50% tariffs on Canadian steel and aluminum imports, following a series of escalating trade disputes between the two North American neighbors [1]. The announcement came after Ontario, a Canadian province, suspended its retaliatory tariffs on US-exported electricity.

Trump's decision to halt the proposed tariff hike, which was initially announced via his Twitter account early on Tuesday, marks a brief respite in the ongoing trade war between the two countries. The US President has been a vocal critic of Canada's trade practices, particularly in relation to its steel and aluminum industries [1].

The latest skirmish in the trade war began last week when Canada announced retaliatory tariffs on C$30 billion ($22 billion; £16 billion) worth of US goods in response to Trump's imposition of tariffs on Canadian steel and aluminum imports [1]. In response, Ford, a major US automaker, threatened to impose tariffs on electricity exports to the US, a move that prompted Trump's initial threat to impose additional tariffs on Canadian steel and aluminum [1].

However, following the suspension of Ontario's electricity tariffs, Ford expressed optimism about resuming negotiations to revise the North American Free Trade Agreement (NAFTA) [1]. The automaker had previously threatened to shut off electricity exports completely if the US escalated the trade dispute [1].

The trade war between the US and Canada has been escalating since Trump took office, with the US President launching trade battles against various countries, including Mexico and China, and imposing tariffs on a range of goods from these countries [1]. Canada, one of America's closest trade partners, has been a prominent target of Trump's trade policies, with the US President imposing a blanket 25% tariff on goods from the country, including steel and aluminum [1].

Despite the temporary truce, the trade dispute between the US and Canada remains unresolved, and both countries have expressed their commitment to pursuing their respective trade interests. The ongoing trade tensions have raised concerns about the potential economic damage to both countries and the wider global economy [1].

References:
[1] BBC News. (2023, April 2). Trump: Won't bend on Canada metals or April 2 tariffs. https://www.bbc.com/news/articles/cm2y811g1dgo