he United States and Canada, which have been exchanging harsh rhetoric and threats of retaliatory tariffs over President Donald Trump’s tariff policies, have each taken a step back. This follows an agreement to find a compromise through a meeting scheduled for the 13th between U.S. Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford. Whether this negotiation will serve as a turning point to ease the tense standoff and restore a peaceful mood or reignite the tariff war remains to be seen.

On the 11th, Lutnick and Ford released a joint statement on social media explaining this temporary truce. They stated, “We held a productive conversation about the economic relationship between the United States and Canada.” Ontario, which had imposed a 25% surcharge on electricity supplied to the U.S. starting the previous day in response to Trump administration tariffs, decided to suspend the measure for now. They also announced plans to meet in person in Washington, D.C., on the 13th.

The announcements came just hours after President Trump responded to Canada’s retaliatory tariffs by threatening to double tariffs on steel and aluminum from 25% to 50% and significantly raise tariffs on automobiles. Earlier that morning, Trump posted on Truth Social, “I have instructed the Commerce Secretary to impose an additional tariff of up to 50% on all steel and aluminum coming from Canada into the United States,” calling it “retaliation for Ontario, Canada, imposing a 25% tariff on power sent to northern U.S. states.” He added, “These (steel) tariffs will take effect tomorrow morning,” and emphasized, “I will soon declare a national emergency regarding power issues in that region.”

Trump cited Ontario’s electricity rate hikes as an “act of malice” behind his policy. Later that afternoon, when asked if he would reconsider the 50% tariffs on steel and aluminum if Canada softened its tariff stance, Trump replied, “We’re looking at it, and probably yes.”

The initial escalation began when Canada retaliated against the U.S. administration’s tariff moves. The previous day, Ontario announced a 25% surcharge on electricity supplied to 1.5 million U.S. households and businesses. Premier Ford warned, “If the U.S. further escalates this trade war, we will completely cut off (Canada’s) power supply.” The provincial government estimated that this decision would cost each American about 100 Canadian dollars (roughly 100,000 won) extra per month.

Last month, Trump issued a proclamation stating that starting December 12, a blanket 25% tariff would be imposed on steel and aluminum. He argued, “Canada pays almost nothing for national security and relies on U.S. military protection,” adding, “We are subsidizing Canada by more than $200 billion annually, and this cannot continue.” He went further, suggesting, “The only solution is for Canada to become the 51st state of the United States,” noting, “If that happens, tariffs and everything else will completely disappear.”

The outcome of the negotiations on the 13th is expected to place the North American economic order at a critical juncture. The two nations, which have maintained a solid alliance for half a century, could face deeper discord. Economic experts warn that if the talks collapse, a vicious cycle of retaliatory tariffs could ensue, potentially spiraling into an uncontrollable trade war between the two countries.