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Trump eyes ‘reciprocal’ trade deals over flat fee tariffs

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“We’re going to have tariffs, mostly reciprocal tariffs … probably reciprocal tariffs where a country pays so much or charges us so much and we do the same, so very reciprocal because I think that’s the only fair way to do it. That way no one is hurt. They charge us, we charge them”

President Donald Trump said Friday he was considering reciprocal trade deals with countries rather than flat fee tariffs on imported goods from other countries.

Trump touted tariffs throughout his campaign and during his inauguration said tariff revenue would make the U.S. “rich as hell.” He also said that tariff revenue would lower the tax burden on American taxpayers.

On Friday, the president said he would announce reciprocal trade agreements next week with multiple countries. His remarks came during a news conference with Japan Prime Minister Shigeru Ishiba.

“The United States will be conducting trade with all countries based on the principle of fairness and reciprocity,” Trump said.

The president said that chronic trade deficits undermine the U.S. economy.

“We’re going to have tariffs, mostly reciprocal tariffs … probably reciprocal tariffs where a country pays so much or charges us so much and we do the same, so very reciprocal because I think that’s the only fair way to do it. That way no one is hurt. They charge us, we charge them,” Trump said.

Trump said the reciprocal trade deals seem to be the path forward rather than flat fee tariffs. He said he would be announcing trade deals as early as Monday or Tuesday.

On Feb. 1, Trump hit Mexico and Canada with 25% tariffs and levied an additional 10% tariff on China. Two days later, Trump suspended tariffs on the U.S. neighbors for 30 days after reaching preliminary deals with both Mexico and Canada. The leaders of both neighboring countries promised to strengthen border security. China responded with limited tariffs on U.S. goods and filed a complaint about Trump’s unilateral trade move with the World Trade Organization.

Most economists have panned Trump’s tariff plans. On Thursday, S&P Global, a credit-rating agency, reported the potential effects of Trump’s tariffs were “overwhelmingly negative.” S&P analysts said the tariffs could slow gross domestic product growth, boost unemployment and inflation. It noted that “the effects on the U.S. are smaller than for trading partners.” Gross domestic product, or GDP, is a measure of economic output. S&P noted the uncertainty around Trump’s tariff plans creates problems for businesses and U.S. families.

“Uncertainty around the path of U.S. policy and its objectives is high, and confidence bands around our forecasts are correspondingly wide,” according to the S&P report. “Moreover, the ongoing deal-making mode of the new administration risks complicating long-term decision making by both firms and households.”

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Ontario suspends electricity surcharge after Trump doubles tariffs

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Quick Hit:

Ontario Premier Doug Ford announced Tuesday that the province is suspending its 25% surcharge on electricity exports to the U.S. following President Trump’s decision to double tariffs on Canadian aluminum and steel.

Key Details:

  • Ford confirmed Ontario’s suspension of the electricity surcharge after Trump’s tariff escalation put Canadian industries under pressure.

  • The Ontario premier said he and Lutnick would meet with U.S. Trade Representative Jamieson Greer on Thursday in Washington to discuss a “renewed USMCA.”

  • In a statement on X, Ford acknowledged the move, stating, “In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota.”

Diving Deeper:

Just hours after President Trump doubled tariffs on Canadian aluminum and steel, Ontario Premier Doug Ford announced Tuesday that the province will suspend its 25% electricity surcharge on power exports to three U.S. states. The policy reversal comes as Ontario seeks to avoid further economic retaliation from Washington.

Trump’s latest round of tariffs—upping duties on Canadian steel and aluminum to 50%—were issued in direct response to Ontario’s electricity tax on U.S. consumers in Michigan, New York, and Minnesota. The move threatened to escalate an already tense trade standoff, with Trump warning of additional penalties targeting Canada’s auto sector if broader trade disputes weren’t addressed.

Ford took to X to confirm Ontario’s decision to pull back on the surcharge, saying he had a “productive conversation” with Commerce Secretary Howard Lutnick. The two will meet in Washington on Thursday alongside U.S. Trade Representative Jamieson Greer to discuss a possible “renewed USMCA,” signaling a potential shift in trade relations between the two nations.

“In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota,” Ford and Lutnick stated in a joint announcement.

The suspension of Ontario’s surcharge marks a significant concession in the ongoing trade dispute, which has sent shockwaves through financial markets and rattled Canadian industries. Trump had labeled Ontario’s surcharge an “abusive threat” and pledged to take decisive action to ensure American energy security.

Beyond the immediate tariff battle, Ford’s willingness to engage in talks about a “renewed USMCA” could indicate Canada’s growing concern over Trump’s broader trade agenda. The U.S.-Mexico-Canada Agreement, originally signed during Trump’s first term, remains a key economic framework, but Trump has long criticized Canada’s tariffs on American dairy and its limited contributions to North American security.

While Ontario’s suspension of the electricity surcharge could ease tensions in the short term, the broader U.S.-Canada trade relationship remains in flux as Trump continues pushing for more favorable terms for American industries.

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Trump doubles tariffs on Canadian steel and aluminum imports

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Quick Hit:

President Trump announced Tuesday an additional 25% tariff on Canadian steel and aluminum imports, raising the total levy to 50%, in retaliation for Ontario’s decision to charge Americans in three border states 25% more for electricity.

Key Details:

  • Trump declared Ontario’s electricity surcharge on New York, Michigan, and Minnesota as an “abusive threat,” vowing to declare a National Emergency to counteract its impact.

  • The president threatened to impose a steep tariff on Canadian automobile imports by April 2nd if other longstanding trade disputes aren’t resolved, warning that it could “permanently shut down the automobile manufacturing business in Canada.”

  • Trump also called out Canada’s minimal contributions to military security, arguing that the U.S. subsidizes the country’s defense by more than $200 billion a year, saying, “This cannot continue.”

Diving Deeper:

President Trump took direct aim at Canada on Tuesday, unveiling an aggressive tariff hike on steel and aluminum imports from America’s northern neighbor. The move raises the current duty by an additional 25%, bringing the total to 50%, and follows Ontario Premier Doug Ford’s controversial decision to slap a 25% surcharge on electricity exports to U.S. border states.

Trump, in a post on Truth Social, blasted Ontario’s move as an “abusive threat” to American energy consumers and promised swift action. “I will shortly be declaring a National Emergency on Electricity within the threatened area,” Trump wrote, saying this would enable the U.S. to “quickly do what has to be done” to counteract Canada’s pricing.

But the trade battle didn’t stop there. Trump also called on Canada to eliminate tariffs of up to 390% on American dairy exports, a policy the president previously fought against during his first term. If Canada fails to act, Trump warned he would ramp up the pressure by imposing new tariffs on Canadian car exports, a move he said would effectively cripple the country’s auto industry.

“If other egregious, long-time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S., which will, essentially, permanently shut down the automobile manufacturing business in Canada,” Trump warned.

In addition to the latest tariffs, Trump took a broader swipe at Canada’s role in global security, reiterating a long-held grievance that the U.S. shoulders an unfair burden for its northern ally’s defense. “Canada pays very little for National Security, relying on the United States for military protection,” Trump wrote. “We are subsidizing Canada to the tune of more than 200 Billion Dollars a year. WHY??? This cannot continue.”

Trump then again floated annexing Canada into the United States to eliminate trade barriers and lower Canadian taxes. “The only thing that makes sense is for Canada to become our cherished Fifty-First State,” he wrote, claiming this would bring economic relief and greater security. “And your brilliant anthem, ‘O Canada,’ will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!”

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