Source: Supply Chain Dive
Date: 11th March 2025

A 25% tariff increase on the metal imports will still go into effect Wednesday, but that rate won’t double after Ontario backed off from imposing retaliatory energy tariffs.

The Trump administration has reversed its plan to levy an additional 25% tariff on steel and aluminum imports from Canada.

In an interview with CNBC, U.S. trade and manufacturing counselor noted that “cooler heads prevailed” after Ontario backed off a retaliatory tariff on energy exports.

The additional duty on the Canadian metal imports—announced Tuesday morning—would have increased their tariff rate to 50%. Last month, the president ordered a 25% tariff on all steel and aluminum imports, which still goes into effect Wednesday.

Canada also topped all countries in aluminum exports to the U.S. in 2024 at more than 3 million metric tons, according to the International Trade Administration. The United Arab Emirates was the next largest at nearly 350,000 tons.

The U.S. President said that the increased tariff on Canada is in response to Ontario Premier’s decision to apply a 25% tariff to electricity imports to several U.S. states, including New York, Michigan and Minnesota. The U.S. President also demanded that Canada eliminate tariffs on U.S. dairy products.

Canada implemented 25% tariffs on several product categories, including milk, butter and cheese, last week in response to duties from the U.S. President paused some of the tariffs until April 2 for goods compliant with the United States-Mexico-Canada Agreement.

Cars are one of the chief imports covered by the pause, but the U.S. President said if Canada does not remove the tariffs by April 2, he “will substantially increase” duties for automobiles from the U.S.’s northern neighbor. The U.S. President has also repeatedly said he will enact reciprocal tariffs on all countries the same day.