Trump to 'probably' pause 50% tariffs on Canada after Ontario's suspension move

US President Donald Trump said on Tuesday that he will "probably" pause doubling tariffs on Canadian steel, aluminium and electricity after Ontario suspended a 25% surcharge on power exports to three American states.

In Short

• Trump may reduce planned tariffs on Canadian goods.
• In response, Trump says he 'probably' will halt doubling tariffs on Canada
• US, Canada officials to meet on March 13 to discuss trade agreement

US President Donald Trump said on Tuesday that he "probably" would back down from doubling tariffs on Canadian steel and aluminium following Ontario's decision to suspend a 25% surcharge on power exports to three American states.

Speaking to reporters at the White House, the 78-year-old US President said he was looking at reducing planned 50% tariffs on Canada. When asked if he would lower them, he replied, "Probably so". "I'll let you know," he added.

Meanwhile, the planned 25% US tariffs on Canadian steel and aluminium have come into effect.

Following a day that was defined by market fluctuations as Trump announced doubling tariffs on Canada, a joint statement by US Commerce Secretary Howard Lutnick, Ontario Premier Doug Ford, and Canada's Finance Minister Dominic LeBlanc said that they would meet on Thursday to discuss a renewed USMCA trade deal ahead of the April 2 reciprocal tariff deadline.

"In response, Ontario agreed to suspend its 25 per cent surcharge on exports of electricity to Michigan, New York and Minnesota," Ford tweeted.

Trump's remarks about the possible halt of retaliatory tariffs subsequently came at the White House. He, however, asserted that he had to make the decision earlier. The US President also said that markets are going to swing up and down over time, rejecting market concerns. Trump pointed out that the tariffs were needed to get US jobs back and factories open, news agency Reuters reported.

In a blistering post on Truth Social, Trump on Tuesday announced increasing tariffs on Canadian steel and aluminum from 25 per cent to 50 per cent, with effect from Wednesday morning.

"I will shortly be declaring a national emergency on electricity within the threatened area. This will allow the US to quickly do what has to be done to alleviate this abusive threat from Canada. If other egregious, long time tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the tariffs on cars coming into the US which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA," he wrote on the social media platform.

Trump blasted Canada for using electricity as a bargaining weapon, which he called "stopping low".

"Why would our country allow another country to supply us with electricity, even for a small area? Who made these decisions, and why? And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come," the US President wrote in another post on Truth Social.

He further said that the only sense for Canada right now would be to become "the cherished fifty first state" of the US, which would make all tariffs "totally disappear".

"Canadians' taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem, and the greatest and most powerful nation in the world will be bigger, better and stronger than ever And Canada will be a big part of that. The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful nation anywhere in the world And your brilliant anthem, 'O Canada,' will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen," Trump wrote.

US stock markets were under pressure on Tuesday, with major indices closing lower after a rough session, with investors reacting to tariff threats from Trump. The markets, however, rallied into the green after the suspension announcement and also positive Ukraine-Russia ceasefire talks.