Major U-Turn: U.S. Drops Plan to Raise Tariffs on Canada Amid Rising Tensions

Washington(The Uttam Hindu): A trade war is intensifying between Canada and the U.S., with President Donald Trump pushing aggressive economic policies. However, the U.S. appears to be backing down, as a senior economic advisor announced that the plan to double tariffs on Canadian steel and aluminum imports to 50% has been halted due to growing uncertainty.

Peter Navarro, in an interview with CNBC, confirmed that the increased tariffs, initially set to take effect on Wednesday, would not be implemented. His statement came shortly after Ontario Premier Doug Ford temporarily suspended surcharges on U.S. electricity exports, signaling a possible de-escalation. Experts suggest that if Canada continues its tariffs, the U.S. may struggle to sustain the trade war for long.

Trump’s tariff policy is already showing negative effects, causing market declines and triggering retaliatory tariffs from Canada and China. Initially, Trump had announced an increase from 25% to 50% on Canadian steel and aluminum imports, but Navarro later withdrew the decision, highlighting a shift in the administration’s approach.

Meanwhile, Canada’s new Prime Minister, Mark Carney, has taken a firm stance against Trump, strongly criticizing his tariff measures and threats to turn Canada into the "51st state of America." Carney accused Trump of attacking Canadian businesses, workers, and families with unfair trade policies and vowed not to let him succeed. As tensions continue, both countries face growing pressure to negotiate a resolution, as prolonged economic conflicts could harm industries and disrupt trade relations.