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OTTAWA — The trade war between the U.S. and Canada took another turn Tuesday as U.S. President Donald Trump threatened to double the tariff on steel and aluminum imports coming from Canada.
Trump said the move was meant to respond to Ontario’s surcharge on electricity exports, which Ontario Premier Doug Ford later agreed to suspend pending a meeting with U.S. Secretary of Commerce Howard Lutnick.
Should Trump’s 50 per cent tariffs proceed, they would apply to Canadian steel and aluminum starting Wednesday, up from the 25 per cent tariffs that were previously expected to apply to those materials.
That comes amid the backdrop of a larger fight which last week saw Trump hit Canada with broader tariffs before partially pausing them for a month. Canada responded with retaliatory tariffs, and markets have fallen as investors brace for the economic impact the duties will have on both sides of the border.
Canadians confused about Trump’s plans aren’t alone, with the U.S. president at times contradicting himself about his own tariff promises.
Here’s what has happened so far, and some key dates coming up as Canada is officially in a trade war with its biggest trading partner.
March 4
Trump initially signed an order on Feb. 1 imposing blanket tariffs of 25 per cent on virtually all goods entering the U.S. from Canada and Mexico, and a reduced 10 per cent tariff on energy, set to begin on Feb. 4.
But a few days later on Feb. 3, he “paused” the implementation of those tariffs for 30 days as Canada pledged action to secure the border.
Trump’s Feb. 1 order also imposed 10 per cent tariffs on goods entering the U.S. from China, which have gone ahead.
There were hopes that the border security measures Canada took during the month-long pause could stave off the tariffs, but on March 3 Trump confirmed they would go ahead, which they did.
Prime Minister Justin Trudeau announced broad retaliatory tariffs on U.S. goods including food, alcohol, furniture, paper and more.
March 5
Trump pledges a one-month exemption for vehicles traded under the Canada-U.S.-Mexico Agreement, also known as CUSMA.
White House Press Secretary Karoline Leavitt said during a briefing that the move comes after the Big Three automakers — Stellantis, Ford and General Motors — asked for an exemption.
March 6
Finance Minister Dominic LeBlanc says Ottawa will suspend a second wave of retaliatory tariffs after Trump signed an executive order Thursday to pause some new duties on Canada and Mexico and reduce potash levies to 10 per cent.
Trump’s order linked the tariff relief to maintaining the flow of automobile parts that comply with CUSMA and to helping farmers who need potash for fertilizer.
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