Tuesday's escalation and retreat in the ongoing trade war between the United States and Canada only compounded the rising sense of uncertainty in terms of how Trump's tariff hikes will play out.
His spate of tax increases on imports and plans for more have roiled the stock market and stirred up recession risks.
Trump said on social media that the increase of the tariffs set to take effect on Wednesday is a response to the 25 25 per cent price hike that Ontario put on electricity sold to the United States.
Ontario Premier Doug Ford said on Tuesday afternoon that US Commerce Secretary Howard Lutnick called him and Ford agreed to remove the surcharge.
He said he was confident that the US president would also stand down on his own plans for 50 per cent tariffs on Canadian steel and aluminium.
"He has to bounce it off the president but I'm pretty confident he will pull back," Ford said on Trump's steel and aluminium tariff threat.
"By no means are we just going to roll over. What we are going to do is have a constructive conversation."
A UK government official said on Tuesday that the United Kingdom will not impose retaliatory trade tariffs in response to US duties on all steel and aluminium imports which are due to come into force on Wednesday.
While the European Union plans to hit back against the 25 per cent US tariffs on imports of the metals, the official - who asked not to be identified - said the UK would continue to engage with the US in an attempt to secure an exemption.
Prime Minister Keir Starmer's official spokesman said on Monday that the UK and the US had a strong economic relationship which was "based on fair and balanced, reciprocal trade".
Trump said during a visit by Starmer to the White House last month that his administration and the UK would negotiate a trade agreement which could help to avert US tariffs.
UK trade minister Jonathan Reynolds made the case for a British exemption from tariffs to US Commerce Secretary Howard Lutnick in a recent phone call.
The US accounts for about 5 per cent of UK steel exports and 6 per cent of aluminium exports, according to UK government data.
UK steel exports to the United States are worth more than 400 million pounds ($A825 million) a year, according to industry body UK Steel which has said the introduction of US tariffs "would be a devastating blow to our industry".
Trump was set to deliver a Tuesday afternoon address to the Business Roundtable, a trade association of CEOs that during the 2024 campaign he wooed with the promise of lower corporate tax rates for domestic manufacturers.
But his tariffs on Canada, Mexico, China, steel, aluminium - with plans for more to possibly come on Europe, Brazil, South Korea, pharmaceutical drugs, copper, lumber and computer chips - would amount to a massive tax hike.
with Reuters
