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.

Trump previously said he would increase from 25% to 50% tariffs for Canada after Ontario said it would raise electricity prices on U.S.

President Trump ordered an additional 25% tariff on Canadian steel and aluminum imports Tuesday in response to Ontario charging Americans in parts of three border states 25% more for electricity. The tariff will go into effect Wednesday morning,

Canada will announce Canadian $29.8 billion or $20.7 billion in retaliatory tariffs in response to the 25% steel and aluminum tariffs that U.S.

Trump’s administration has retracted the decision to double tariffs on Canadian metals after Canada announced that it would reverse its decision to retaliate with a 25% tax on electricity sold to the U.