Ontario is holding off on a 25% surcharge on electricity going into the U.S., Premier Doug Ford said in a joint statement with Secretary of Commerce Howard Lutnick—just hours after Trump threatened to impose a 50% tariff on all Canadian steel and aluminum products Wednesday, marking an escalation in the U.S.-Canada trade war.

President Donald Trump backed down from an extraordinary trade war escalation Tuesday that had threatened a massive surge in Canadian steel and aluminum tariffs and new tariffs on Canadian electricity.