United States ruler Donald Trump has backed off his plan to double tariffs on Canada. Trump made the threat as retaliation for Ontario Premier Doug Ford’s decision to impose a 25% tariff on electricity exports to Michigan, New York, and Minnesota.

A senior White House adviser said Tuesday in an interview with CNBC that Trump’s initial plan was to double tariffs on steel and aluminum imports from Canada.

Canada Vows To “Retaliate” If Trump Imposes Tariffs On It

White House spokesman Kush Desai said in a statement that the initially announced 25% tariff on steel and aluminum “with no exceptions or exemptions” would take effect for Canada and all other trading partners on March 12th, pursuant to Trump’s previous executive orders.

Canada Says It Will “Win” The Trade War With The U.S.

Trump hinted at the possibility of a reversal Tuesday afternoon, and later, White House trade advisor Peter Navarro confirmed the decision on CNBC. He specified that U.S. Commerce Secretary Howard Lutnick “did a beautiful job” by persuading Ford to suspend the electricity tariffs during a phone call, which also led to a commitment to resume trade talks.

In a joint statement after the call, Ford and Lutnick described their discussion as “productive” and emphasized the importance of US-Canada economic ties. They also announced plans to meet in Washington on Thursday to negotiate a renewed trade deal between the U.S., Canada, and Mexico ahead of Trump’s April 2nd tariff deadline.

Trump’s row with Canada could also be linked back to his offer of “allowing” Canada to become the 51st state.

Trump Suggested Canada Become The 51st State

Back in December, Fox News White House correspondent Peter Doocy told Special Report host Bret Baier on Monday evening: “We are told that when Trudeau told President-elect Trump that new tariffs would kill the Canadian economy, Trump joked to him that if Canada can’t survive without ripping off the U.S. the tune of one hundred billion dollars a year, then maybe Canada should become the 51st state and Trudeau could become its governor.”