US to Impose 25% Tariffs on Canadian Steel and Aluminum Instead of 50%

Washington, March 12, 2025 — US President Donald Trump’s trade adviser, Peter Navarro, confirmed that the US will impose a 25% tariff on Canadian steel and aluminum instead of the previously planned 50% increase. The tariffs are set to take effect on Wednesday.

This decision comes after Ontario Premier Doug Ford announced he would temporarily suspend plans to impose a 25% tariff on electricity exports to northern US states. The suspension followed talks between Premier Ford and US Commerce Secretary Howard Lutnick.

Earlier, President Trump had ordered the US administration to double the tariffs to 50% on Canadian steel and aluminum, in response to Ontario’s plan to surcharge electricity exports to the US. However, a White House spokesperson clarified that the previously planned 25% tariff on steel and aluminum will apply to Canada and all other US trading partners starting at midnight.

Premier Ford had proposed the 25% surcharge on electricity exports to the US, which would have impacted about 1.5 million homes and businesses in northern US states, including Michigan, Minnesota, and New York. Canada exports approximately 12,000 megawatts of power to the US every day, according to Canadian Minister Stephen Lecce.

The White House praised President Trump’s move, stating that he had used the strength of the US economy to secure a better deal.