U.S. Imposes New Tariffs as Trade Dispute with Canada Escalates

The U.S. is set to impose a 25% tariff on steel and aluminum imports from Canada and several other nations, with the policy taking effect at midnight on March 12.

While President Donald Trump had previously considered pushing the rate even higher to 50%, he ultimately decided against it, offering no exemptions to any trading partners.

According to White House spokesperson Kush Desai, the tariff is in line with prior executive orders and will be enforced without exception.

Earlier in the day, Trump’s announcement that he intended to double tariffs on Canadian metals sent shockwaves through the markets. His decision was reportedly a response to Ontario’s newly introduced 25% tax on electricity exports to the U.S. The heightened trade tensions fueled uncertainty in North American markets.

However, a shift occurred when Ontario Premier Doug Ford and U.S. Commerce Secretary Howard Lutnick confirmed that Ontario would put its electricity export tax on hold. The two officials plan to meet in Washington later in the week to discuss trade relations.

Ford later acknowledged that negotiations often reach a critical point where tempers flare, but he stressed that de-escalation was necessary. His remarks were followed by Trump hinting at the possibility of reconsidering the increased tariffs.

While this development may provide a temporary reprieve, the underlying tensions between the U.S. and Canada over trade remain unresolved.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.