Donald Trump indicates major u-turn after announcing he would double Canada tariffs

Donald Trump has indicated a change of heart after he announced a major escalation in the US' trade war with Canada earlier today.

The US has threatened tariffs against Canada and Mexico more than once, only to back off following talks with the leaders of those countries.

However, Trump once again pledged to stick 25 percent tariffs on Canadian steel and aluminium starting tomorrow (12 March).

Around 90 percent of Canada's aluminium exports go to the US, and the US bought around six million tonnes of Canadian steel last year.

In response, the Canadian province of Ontario countered that by adding a 25 percent surcharge on energy exported to the US states of New York, Michigan and Minnesota as Ontario's premier Doug Ford said that the province would not back down 'until the threat of tariffs is gone for good'.

Donald Trump threatened to hike Canada's tariffs to 50 percent and said they should become the 51st state (Andrew Harnik/Getty Images)

Trump then escalated the trade war he has kicked off with various countries by declaring that some of the tariffs on Canada would be doubled to 50 percent.

Writing in his usual shouty fashion on Truth Social, Trump said: "I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD."

Trump also said he would declare a 'national emergency' in the three US states which would experience the surcharge in energy imported from Canada.

After Trump announced he was increasing the tariffs, the American stock market fell again, and yesterday (10 March) has been the worst day in US markets this year.

But there has since been a sign tensions could deescalate.

Doug Ford said he was pausing the energy surcharge after the US commerce secretary offered an 'olive branch' (Steve Russell/Toronto Star via Getty Images)

Ford has now said he will suspend the surcharge in energy prices on the three US states, explaining that US Commerce Secretary Howard Lutnick had extended an 'olive branch' and asked Canadian officials to come to Washington, D.C., for a meeting.

He said that the 'temperature needs to come down' and is 'pretty confident' that the US will pull back on Trump's declaration of 50 percent tariffs.

Ford said: "You can't attack your number one customer, Canada, and not expect a response."

When asked if he would reconsider the 50 percent tariffs following Ford's comments, Trump said: "I’m looking at that, but probably so."

A joint US-Canada statement read: "Today, United States Secretary of Commerce @howardlutnick and Premier of Ontario Doug Ford had a productive conversation about the economic relationship between the United States and Canada.

"Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota."