Alex Lederman
US reporter

It seems the day will end as it began on the tariffs front - with the US planning to impose a 25% surcharge on steel and aluminium imported from Canada, as well from everywhere else in the world, starting at midnight.

But in the intervening hours, economic threats and then rollbacks have flown back and forth across the US-Canadian border all day.

Just a few days ago, I was in the room as Canada’s Liberal Party gathered to elect its next leader on Sunday. With the US president's warnings from across the border, the anti-Trump feeling in the room was palpable.

The red maple leaf Canadian flag hung everywhere in sight.

Canadians - usually stereotyped for being so polite - were ready for a fight.

A once-dejected Liberal Party felt rejuvenated. With a trade war looming and a widespread feeling that Canadian sovereignty could be under threat, the party had a newfound sense of purpose.

"In trade, as in hockey, Canada will win," the newly selected party leader Mark Carney told a roaring crowd. Polls showed a huge bounce back from near-certain defeat to the Conservatives in the coming general election.

Just hours before, hundreds of ordinary Canadians made their voices heard outside Parliament. “We are not for sale!" one sign read. "Not a 51st anything," another poster said, held high.

"If there's anybody out there threatening my home, I want to be a part of the fight against that," one woman told us.

The entire political landscape has changed in Canada. With Donald Trump's tariffs and threats, Canadians have rallied around their flag.

• We are pausing our live coverage of the tariffs for now, but you can stay updated here: Trump halts plan for 50% steel and aluminium tariffs on Canada

Image source, Getty Images

It's been a hectic Tuesday for North American trade, with threats of fees on imported goods flying back and forth between the US and Canada like a ping pong ball.

Yesterday, Ontario Premier Doug Ford announced a 25% surcharge on electricity sent from the province to the US, threatening to "shut off electricity completely" if the US were to further escalate the ongoing trade war. Trump retaliated by doubling the US's upcoming 25% global steel and aluminium tariffs to 50% for Canada.

But then by this afternoon, both parties had stepped back from these vows.

Head spun? Here's an approximate timeline of how it all went down, in Eastern Daylight Time:

10:30 am Trump announces an additional 25% tariff on Canadian steel and aluminium in retaliation to Doug Ford's Monday electricity surcharge threat, bringing the import fee to 50%

12:25 pm When asked why Mexico wasn't facing the same fees, Mexican President Claudia Sheinbaum responded: "We're respectful"

12:40 pm Ford says he will meet with US Commerce Secretary Howard Lutnick, adding that shutting off electricity to various northern US states is the “last thing” he wants to do

13:45 pm White House Press Secretary Karoline Leavitt calls Ontario's threat to shut down electricity imports to the US "egregious and insulting". When asked if the US still considers Canada a close ally, she says they "might be a competitor now"

13:55 pm Canada's next Prime Minister Mark Carney posts on social media, calling the new tariff hike "an attack”, saying his government will "ensure our response has maximum impact in the US and minimal impact here in Canada"

14.05 pm The Canadian Chamber of Commerce says that without its country's exports, "the US won't have enough of either metal to satisfy the needs of its demanding economy", suggesting Trump's promised "golden era" would therefore not be possible

14:50 pm Ford says he will suspend the electricity surcharge after Lutnick reached out to him in a phone call with an "olive branch", adding that he will be headed to Washington on Thursday to negotiate with the US trade secretary and is "pretty confident" Trump will back down on the additional tariff hikes

15:35 pm Trump says he's "looking at" walking back the additional hikes and "could make a different decision"

16:50 pm White House officials Lutnick and Peter Navarro confirm Trump has reversed his plans to double the steel and aluminium tariffs to Canada to 50%, and say the 25% tariff will go into effect as scheduled at midnight for Ottawa and the rest of the world

Image source, Getty Images

Much of today's tariff discussion was centred around Canadian energy imports to the United States.

President Donald Trump blamed the province of Ontario's now-rescinded move to place a 25% surcharge on electricity heading into the US as the reason for his now-cancelled decision to double steel and aluminium tariffs.

But how much electricity does the US import from Canada ?

When Ontario’s leader Doug Ford announced the 25% surcharge on electricity exports, he suggested that the measure would impact 1.5 million homes and businesses across the northern states of Minnesota, Michigan and New York.

Canadian Minister Stephen Lecce has also claimed that Canada sells 12,000 megawatts of power into the US market each day, and is a “30 times net exporter” to the US - “they need our power”, he says.

According to Electricity Canada, external, a trade association for Canadian energy suppliers, the US imports electricity from its neighbour because it makes sense for affordability.

The trade association says that cross-border trade in electricity works by allowing regions to coordinate with neighbours to draw on each other’s surplus supplies when excess electricity isn’t being used, therefore keeping costs down and avoiding overbuilding.

For instance, it says, Canadians tend to use more electricity during winter for heating, while demand in the US is higher during the summer, when it is needed for cooling.

The White House says Donald Trump has delivered "a win for the American people", after Ontario Premier Doug Ford dropped his threat to impose a 25% surcharge on electricity exports to the US.

In response, Trump had also threatened to double the rate of aluminium and steel tariffs on Canada from 25% to 50%. He has also since walked back on this threat.

"President Trump has once again used the leverage of the American economy, which is the best and biggest in the world," the statement says.

The White House says Trump's plans for a 25% tariff on steel and aluminium will still take effect on Wednesday - "with no exceptions or exemptions".

Jessica Murphy
Reporting from Toronto

Marty Warren, the national director for the union representing steelworkers in Canada, tells the BBC the on-again-off-again threats of tariffs from the US on his industry are "reckless" and have been a cause of major anxiety for workers.

"Our members are scared," Warren of the United Steelworkers tells the BBC. Earlier on Tuesday, the union said the tariffs would be an "industry killer" that would lead to job losses.

Warren says that his union has been in discussions with its US counterpart to send a message that these tariffs stand to hurt both American and Canadian workers.

"We're relying on allies. Some won't speak up," he acknowledges. "Some will, but we're trying to work closely and lobby the people that we think we can get a message through."

He adds his union members are not only concerned about tariffs, but also the sovereignty of Canada as US President Donald Trump repeats his desire to make Canada "the 51st state."

Warren notes that this second Trump administration is different from his first, which also imposed tariffs on steel and aluminium back in 2018. They were rolled back the following year.

"Trump said he would take Canada through economic means," he says. "This constant threat, this constant disrespect for Canadians and Canada's sovereignty is what makes it different."

Charging some of its closest allies and trade partners more to import goods might seem counterintuitive for the US.

But by making imports more expensive, Trump is hoping to stoke demand for US-made goods, helping to boost domestic manufacturing.

Trump has also said he wants to raise money for the government through the fees.

Trade Secretary Howard Lutnick told Fox News the president’s “goal is to abolish the Internal Revenue Service and let all the out outsiders pay” - a proposal the president has dubbed the “External Revenue Service”.

If trade dries up though, it's not clear how much revenue tariffs will raise.

Before the media left the room, Trump made some wide-ranging opening remarks at the business roundtable event, covering everything from ceasefire negotiations regarding the war in Ukraine to the success of Doge.

He spoke briefly about tariffs, saying they're having a "tremendously positive impact".

He claimed car companies have relocated their manufacturing from Mexico to the US. He also accused China of owning the plants being built in Mexico, adding that tariffs had put a stop to that now.

The relocation of industry to the US is a "bigger win" than the money being brought in by the tariffs, he said.

After President Trump entered the roundtable event and made his opening remarks, the media present appear to have been asked to leave shortly after he began answering questions.

Our feed has been cut. Online feeds run by other outlets, including the Wall Street Journal and Fox, have also been turned off.

President Trump is now meeting the CEOs of America's largest companies for a roundtable discussion, where the current economic situation is sure to be top of the agenda.

Around 100 business leaders are expected to be in attendance at the regular meeting of the Business Roundtable in Washington, DC. Those in the room will include the CEOs of Apple, JPMorgan Chase and Walmart.

The meeting comes as US stock markets plummeted in response to Trump's threats of tariffs on neighbouring Canada and Mexico, as well as other nations.

The market drop signals anxiety on the part of investors, who worry that the tariffs could trigger an economic slowdown or cause a recession.

Trump himself declined to rule out the possibility of a recession in an interview with Fox News last week, saying: "I hate to predict things like that" after acknowledging that his policies will bring about a period of transition.

• Analysis: Trump is no longer swayed by the stock markets

In addition to senior US trade adviser Peter Navarro, Commerce Secretary Howard Lutnick has now also confirmed that the White House will no longer impose 50% tariffs on Canadian steel and aluminium, according to the BBC's US media partner, CBS news.

Trump had earlier suggested a reversion to 25% tariffs could happen today.

The original 25% tariffs will still go into effect on Wednesday, Lutnick says.

Bernd Debusmann Jr
Reporting from the White House

Senior White House trade adviser Peter Navarro has confirmed that the administration has reversed plans to double tariffs on Canadian steel and aluminium.

Speaking to reporters outside the White House, Navarro says the change happened after Ontario's Premier Doug Ford backed down from his electricity surcharge, which Navarro described as "sounding ominous".

"I think he [Doug Ford] kind of understood that this was not going to be a fight," Navarro says. "I've encouraged our friends in Canada to keep the rhetoric down."

The 25% tariffs on aluminium and steel will still be enforced.

Earlier, Navarro said Ford was a "politician in Canada" rather than an economist.

Additionally, while Navarro said the transition to "Trumponomics" could be a "little bumpy", he said the administration was confident.

"If you're a stock market investor and you understand Trumponomics, you will be bullish, and you won't fall prey to daily volatility and get fleeced by day traders," Navarro added.

While President Donald Trump has hinted he might consider cutting back on the 50% tariffs he's announced on Canadian steel and aluminium, plans are currently still in place to bring in 25% tariffs on these materials from midnight on Wednesday for several countries.

US steel and aluminium imports from a number of countries, including Canada, its biggest steel supplier, will be taxed at a minimum of 25%.

The other countries listed in his executive order, external signed in February include Argentina, Australia, Brazil, EU countries, Japan, Mexico, South Korea and the UK.

The order revokes exemptions for tariffs Trump had made for those countries during his first term, in 2018. It also increases aluminium tariffs from 10% to 25%.

Bernd Debusmann Jr
Reporting from the White House

It's rare to see a White House news conference in any administration where a US ally is spoken about in the tone used today with regard to Canada, even in periods when officials in Washington have clearly been exasperated with their partners abroad.

At one point, Leavitt recited statistics on the cost of living in major Canadian cities, saying their residents would be “better served” if, as Trump has suggested, Canada becomes the 51st state of the US.

The White House posture towards Canada is starkly different to the stance on Mexico, which has also faced the threat of tariffs.

Just recently, for example, Trump said he had a “great relationship” with Mexican President Claudia Sheinbaum, whom the Washington Post this week dubbed “the world’s greatest Trump whisperer”.

Nadine Yousif
Reporting from Toronto

We just heard from Ontario's leader Doug Ford, who announced at the top of his news conference that he has agreed to temporarily pause a 25% surcharge to electricity his province sends to 1.5 million American homes, after US Commerce Secretary Howard Lutnick extended an "olive branch".

Earlier today, President Trump threatened to double tariffs he planned to impose tomorrow on Canadian steel and aluminium in response to Ontario's electricity hike. This afternoon, after Ford spoke, Trump said he could cut back on import duties.

All eyes will now be on a meeting that is set to take place between Ford and Lutnick. That will happen on Thursday in Washington, according to Lutnick. Among those in attendance will be Canada's Finance Minister Dominic LeBlanc.

Ford cautioned that Ontario still has electricity as a bargaining chip. But he said that he would not deny an opportunity to sit down with the Americans and let "cooler heads prevail".

We've just heard a response from Donald Trump following Doug Ford's reversal on imposing a 25% tariff on electricity flowing from his province to northern US states.

The president tells reporters at the White House that he's now considering cutting back on the 50% tariffs he announced earlier on Tuesday.

Trump said he's "looking at it" and could "make a different decision".

Trump then confirmed that the "strong man in Canada" - referring to Ford, who also earlier threatened to cut off electricity exports to the US - has suspended his own tariff plans.

"I respect that," Trump said.

US Commerce Secretary Howard Lutnick said "I’m glad they listened" in a post on social media, after Canada's Doug Ford announced a pause on plans to end his territory's energy exports to some US states.

Tensions quickly flared between Ford and Trump on Tuesday, after Ford said he would "not hesitate" to stop supplying the US with electricity in response to Trump's tariffs, and Trump in turn said Canada would pay a price "so big it will be read about in history books for years to come".

Lutnick announced that he and Ford have agreed to meet in Washington on Thursday ahead of Trump's 2 April deadline for reciprocal tariffs.

In response, Ontario agreed to suspend its 25% surcharge on exports of electricity to Michigan, New York and Minnesota, Lutnick said.

Ontario Premier Doug Ford has just finished speaking to the press in Toronto after a back and forth over tariffs between the US and Canada.

Here’s what you need to know:

• Ontario will suspend a 25% electricity surcharge to several US states, after Commerce Secretary Howard Lutnick offered an “olive branch”, said Ford
• The premier told reporters he was “pretty confident” that the Americans would pull back on the threat of 50% steel and aluminium tariffs
• Ford will head to Washington to meet Lutnick this week, and they will negotiate the next steps alongside Canadian Finance Minister Dominic LeBlanc
• Ford says he won’t “roll over”, but doesn’t want to wait for the 2 April deadline, which Trump has set to implement reciprocal tariffs

One other notable soundbite from that news conference with Ontario Premier Ford.

He told reporters: "You can't attack your number one customer, Canada, and not expect a response."

He said the country had responded to US tariffs and the next step was to negotiate.

Calling himself a “businessperson”, he said he wanted to find a solution to “stop the bleeding”.

Ford added that China was sitting back and laughing at the US and Canada's trade spat.

Trump has time to bounce backpublished at 19:13 Greenwich Mean Time 11 March

19:13 GMT 11 March

Anthony Zurcher
North America correspondent

As President Trump escalated his trade war with Canada and US stocks rode a rollercoaster, White House press secretary Karoline Leavitt painted an upbeat picture earlier today.

Setbacks are only “temporary”.

Economic warning signs are just a “snapshot in time”.

Manufacturing job numbers are strong, and foreign investments are up.

And to whatever extent there are problems with the US economy, it is because of Trump’s predecessor, Democrat Joe Biden.

American voters tend to have short memories, however, and blaming current conditions on a president who left office in January is unlikely to fly for long – particularly when economic uncertainty has been exacerbated by Trump’s own actions.

That short memory ultimately may end up helping Trump and his team, however, if their trade and government-slashing plans do eventually lead to the kind of growth they have promised.

Congressional elections aren’t until November 2026, and this is still early in Trump’s second term.

There is plenty of time to bounce back. But every day on this current trajectory means the political hole the president is digging gets deeper, whether Leavitt acknowledges that from the White House podium or not.

Ford says that when someone extends an "olive branch", he would thank them for the opporutnity.

"All you folks have seen how President Trump has changed things on a daily basis," Ford said. "I don't want to wait until April 2," when Trump said reciprocal tariffs would kick in, Ford said.

"God only knows" what would happen between now and that deadline, he said.