The latest effort by U.S. President Donald Trump to realign global trade has come into force as every country including Canada, was hit with 25 percent tariffs on steel and aluminum imports into the country.
Trump’s executive order became at 12:01 a.m. ET. The order removes the exceptions and exemptions from Trump’s 2018 tariffs on steel and aluminum, which excluded Canada and other countries from the duties.
The latest tariffs came into force hours after the White House confirmed that Trump would not follow through on recent threats to double tariffs on Canadian steel and aluminum after Ontario agreed to put on hold a surcharge on electricity exports to the U.S.
United States Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford spoke by phone recently and Ford removed the 25 percent surcharge on electricity exports to three U.S. states in return for the reduced duties on steel and aluminum.
Ford is about to meet with members of Trump’s team in Washington to discuss the Canada-U.S.-Mexico Agreement (CUSMA).
Trump praised Ford, calling him a “strong man” and a “gentleman.”
In a recent social media post, Prime minister-designate Mark Carney said though Canada “can’t control President Trump, we can control how we respond — by supporting our workers and building a stronger, more resilient economy for our future.”
Markets have been in chaos since Trump started to effect his massive tariff agenda.
Recently, Trump signed an executive order putting on hold until April tariffs on goods that meet the rules-of-origin requirements under CUSMA.
The White House has disclosed that steel and aluminum tariffs will top any other duties that Trump introduces in April.
About a quarter of the steel used in the United States is imported and Canada is the biggest supplier. Canada is also the United States’ biggest source of aluminum.
