The Canadian province of Ontario will temporarily suspend its plan to charge a 25% tariff on electricity it sends to northern US states, Premier Doug Ford says.
The reversal comes after US President Donald Trump had said he would double tariffs on Canadian steel and aluminium from 25% to 50% in response.
According to Ford, negotiations between his province and the Trump administration are ongoing, with US Commerce Secretary Howard Lutnick inviting Ford to Washington.
Following that pause from Ford, Trump tells reporters he is “looking at” backing away from the doubling of tariffs on Canadian steel and aluminium
Earlier, the White House had called a separate threat from Ontario to cut off electricity exports to 1.5 million American homes “egregious and insulting“.
Trump said the tariffs will begin on Wednesday, adding that he’ll declare “a national emergency on electricity” in those states.
The latest escalation comes after the worst day of 2025 for US markets, fuelled by fears of President Trump’s aggressive tariffs on America’s biggest trading partners.