Trump, Ontario ease tariff threats

Business & Economy

The Big Story

Trump nixes plans for tariffs on Canadian steel

President Trump scrapped plans Tuesday to increase steel and aluminum tariffs on Canada after the Ontario government canceled a surcharge on US energy exports.

The move came after the government of Ontario on Tuesday backed off its threat to impose a surcharge on electricity to three U.S. states amid broader trade talks.

In a joint statement from Ontario Premier Doug Ford and Commerce Secretary Howard Lutnick, the two leaders said they had a “productive conversation about the economic relationship between the United States and Canada.”

Last year, the United States imported more steel and aluminum from Canada than from any other country.

Earlier in the day, Trump also threatened additional tariffs against Canada in the coming weeks, pointing to plans for his administration to impose reciprocal tariffs beginning April 2 on all countries with duties on U.S. products.

The uncertainty around Trump’s tariff plans have led to a downturn in the stock market, and the president has not ruled out the possibility of a recession this year.

While markets briefly rebounded on Tuesday, then ended well in the red again. The Dow Jones was down 478 points or 1.13 percent for the day.

The Hill's Brett Samuels has more here.

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