US President Donald Trump’s Trade Adviser Peter Navarro has announced a decision to impose 25% tariffs on Canadian aluminum and steel, reversing an earlier intention to increase these tariffs to 50%.
Gatekeepers News reports that the announcement came after the Canadian government implemented a 25% tariff on electricity exports to the United States. In response to this move, Trump initially indicated an intent to escalate tariffs significantly.
However, after Ontario suspended its electricity export surcharge to states such as Michigan, Minnesota, and New York, the situation shifted. When questioned by reporters at a White House event regarding the 50% tariff, Trump stated, “I’ll let you know.”
Following these remarks, Navarro confirmed in a CNBC interview that the proposed higher tariffs would not be implemented.
Instead, a 25% tariff on all steel and aluminum imported into the US, including from Canada, is set to take effect at midnight on Wednesday, as stated by White House spokesperson Kush Desai in an email to CNN.
The fluctuating tariff announcements have caused significant volatility in financial markets, with the Dow experiencing declines following Trump’s initial 50% tariff threat, although it showed signs of recovery later in the day.
This series of tariff discussions comes in the context of a challenging period for the US stock market, which faced its worst decline of 2025 on a previous Monday.
Trump is scheduled to address the Business Roundtable, a trade association of CEOs, emphasizing his commitment to lower corporate tax rates for domestic manufacturers. However, the proposed tariffs on Canada, Mexico, and China, along with potential tariffs on Europe, Brazil, and South Korea, represent a significant increase in tax burdens.
The recent market response reflects concerns among investors regarding the implications of Trump’s import taxation strategy, creating a tension between his focus on tariffs and his portrayal as a businessman who comprehends market dynamics based on his experiences in real estate, media, and marketing.
