Trump's reversal comes after the Canadian province of Ontario suspended its decision to impose a 25% tariff on electricity exports to the USA. This development was seen as one of the final stages of a trade war between the two countries that risks causing economic damage.
Trump's trade adviser confirmed that the tariff increase will not be implemented, saying “Cooler heads prevailed” in a statement on the process. Canada has been one of the countries most affected by the Trump administration's trade policies, announcing retaliatory tariffs on 30 billion Canadian dollars worth of USA products following Washington's tough decisions.
Trump had previously stated that he would remove some tax exemptions granted to Canada for steel and aluminum. However, following the latest developments, both sides took steps to reduce tensions. Canada halted the electricity export tax it had planned to impose on the USA, while Trump announced that he was abandoning the additional tariffs.
In a statement on his social media account, Trump argued that Canada relies on USA military protection and reiterated his view that the country should be the 51st state of the USA. Trump said that if Canada joined the US as a state, all tariffs and trade barriers would disappear.
The White House, on the other hand, described the process as “a victory for the American people, once again using the power of the US economy.”
Comments
No comment yet.