US President Donald Trump's trade adviser, Peter Navarro, confirmed on Tuesday that the planned 50% tariff on Canadian steel and aluminum will not be implemented on Wednesday, Reuters reported.
Earlier in the day, Trump had issued an order to impose a 25% tariff on all steel and aluminum imports, effective Wednesday.
However, Trump also stated that this tariff would be doubled to 50% on Canada after Ontario Premier Doug Ford announced plans to levy a surcharge on electricity exports to the US.
Ford ultimately reversed his decision, suspending the surcharge following a conversation with US Commerce Secretary Howard Lutnick.
In response to a CNBC reporter's question regarding the 50% tariff not being implemented, Navarro replied, "that's correct."
Subsequent to Navarro's statement, a White House spokesperson issued a statement confirming that the previously planned 25% tariff on steel and aluminum will take effect for Canada and all other US trading partners at midnight.
At the start of February, Trump agreed to postpone the tariffs on Canada and Mexico for a month following discussions with the leaders of those countries. During these talks, the parties agreed to take action aimed at curbing the influx of drugs across the border.
Trump confirmed last week that the 25% tariffs on steel and aluminum imports from Canada and Mexico would go into effect.
He later said that 25% tariffs for goods under the United States-Mexico-Canada Agreement (USMCA) would start on April 2.