President Donald Trump said Tuesday that he would double his planned tariffs on steel and aluminum from 25% to 50% for Canada, a retaliation that prompted the provincial government of Ontario to back down on its planned surcharges on electricity sold to the United States. Tuesday's escalation and retreat in the ongoing trade war between the United States and Canada only compounded the rising sense of uncertainty in terms of how Trump's tariff hikes will play out. His spate of tax increases on imports and plans for more have roiled the stock market and stirred up recession risks. Trump said on social media that the increase of the tariffs set to take effect on Wednesday is a response to the 25% price hike that Ontario put on electricity sold to the United States.

"I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD," Trump posted on Truth Social. Ontario Premier Doug Ford said on Tuesday afternoon that US Commerce Secretary Howard Lutnick called him and Ford agreed to remove the surcharge. He said he was confident that the US president would also stand down on his own plans for 50% tariffs on Canadian steel and aluminum. "He has to bounce it off the president but I'm pretty confident he will pull back," Ford said on Trump's steel and aluminum tariff threat.