Washington, DC: US President Donald Trump announced that Canada will refrain from imposing tariffs on electricity imports to the United States, following his decision to de-escalate tensions in the ongoing trade dispute with the neighboring country.
He criticized both Canada and Mexico for what he described as "unfair" treatment of the US and also expressed his discontent with the European Union, labeling it as "horrible."
During a press conference on Tuesday (local time), Trump remarked, "There is a very strong leader in Canada who indicated he would impose a surcharge or tariff on electricity entering our nation. He has since communicated that he will not proceed with that plan. It would have been detrimental if he had, and I appreciate his decision."
"Frankly, we have been treated very unfairly by Canada, by Mexico, and by virtually every other country globally. The European Union is terrible, and we will address that... But we are USD 36 trillion strong, and we will reclaim what is ours. We are the largest and the best. I remain very optimistic," he continued.
Trump also held former US President Joe Biden accountable for the current inflation and illegal immigration issues, asserting that his predecessor left behind a "mess" and a "horrible situation" for Americans, while promising that his administration would restore the nation's wealth.
I must express my strong optimism regarding the country's future, particularly in this challenging context, rather than opting for a simpler approach. The situation left by Biden is quite dire, characterized by significant inflation and soaring product costs. Additionally, we are facing a serious issue with millions of individuals who have entered our country, many of whom are criminals. This has created a troubling environment, but we are actively working to rectify it. One of our key objectives is to restore the nation's wealth and bring jobs back home. Currently, we are being exploited by global forces, but we are determined to put an end to that.
On Tuesday, Trump decided to ease tensions in a potential trade war that could have led to substantial tariff increases on Canadian steel and aluminum, as well as new tariffs on Canadian electricity. Consequently, Canada has suspended electricity surcharges for U.S. customers, according to CNN.
Following the tariff exchanges that affected the market for two consecutive days, U.S. Commerce Secretary Howard Lutnick, Canadian Finance Minister Dominic LeBlanc, and Ontario Premier Doug Ford announced plans to meet on Thursday to renegotiate the USMCA free trade agreement.
Ontario has agreed to pause the 25 percent tariffs on electricity exports to New York, Michigan, and Minnesota. Initially, Trump had threatened a 50 percent tariff on Canadian aluminum and steel, but he later signaled a willingness to retract that stance.
Earlier on Tuesday, Trump warned that he would retaliate against Ontario's 25 percent surcharge on electricity to New York, Minnesota, and Michigan with an additional 25 percent tariff on Canadian electricity. Moreover, he indicated plans to impose even higher tariffs on Canadian steel and aluminum than previously anticipated.
In a post on Truth Social, Trump announced, "Due to Ontario, Canada imposing a 25% tariff on 'Electricity' entering the United States, I have directed my Secretary of Commerce to implement an ADDITIONAL 25% tariff, raising the total to 50%, on all STEEL and ALUMINUM IMPORTS FROM CANADA, which is among the highest tariffing nations globally."
Ford has threatened to cut off electricity supplies to the U.S. In response to Trump's tariff measures, Canada's Prime Minister-Designate Mark Carney pledged to maintain pressure on the U.S., as reported by CNN.
Additionally, White House Press Secretary Karoline Leavitt stated on Tuesday that Trump has not yet had a conversation with Carney, but emphasized that "his phone is always open to leaders who wish to speak with him."
