# Trump halts plan for 50% steel and aluminium tariffs on Canada

3 days ago

**Tom Espiner & Natalie Sherman**

BBC business reporters



Donald Trump has halted a plan to double US tariffs on Canadian steel and metal imports to 50%, just hours after first threatening them.

Tariffs of 25% still went ahead and took effect on Wednesday.

The move by the president comes after the Canadian province of Ontario suspended new charges of 25% on electricity that it sends to some northern states in the US, hours after Trump threatened to sharply increase his tariffs on the country.

It marked the latest skirmish in a trade war that risks economic damage to the two North American neighbours.

## Stock market falls

The back-and-forth came during a turbulent time for markets.

The S&P 500 index of the largest firms listed in the US fell a further 0.7% on Tuesday after dropping 2.7% on Monday, which was its biggest one-day drop since December.

The UK's FTSE 100 share index, which had edged lower earlier on Tuesday, fell further following Trump's latest comments and closed down more than 1%. The French Cac 40 index and German Dax followed a similar pattern.

Monday's stock market sell-off had begun after Trump  when asked about whether the US was heading for a recession.

Investors have been concerned about the economic effects of Trump's trade policies, which it is feared could push up inflation in the US and beyond, while uncertainty leads to economic paralyisis.

## 'Worrying time'

Even before Tuesday's comments, Trump's tariffs had already been causing concern for US businesses.

On Monday, Jason Goldstein, founder of Icarus Brewing, a small beer-maker in New Jersey that employs 50 people, told the BBC that previous tariff announcements had prompted a slew of emails from his suppliers.

They have been warning that price increases for everything from grain and aluminium cans are likely to be coming.

Mr Goldstein has stockpiled an extra month's supply of cans and held off on new purchases as a result of the uncertainty and rapidly changing situation.

"It's definitely a worrying time for us," he said.

"Never before in my life have I had to read so much news, watch so much news to know, here's what my industry's going to look like tomorrow."
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