Ontario is holding off on a 25% surcharge on electricity going into the U.S., Premier Doug Ford said in a joint statement with Secretary of Commerce Howard Lutnick—just hours after Trump threatened to impose a 50% tariff on all Canadian steel and aluminum products Wednesday, marking an escalation in the U.S.-Canada trade war.

Trump said he would increase from 25% to 50% tariffs taking effect Wednesday for Canada after Ontario said it would hike electricity prices in the U.S.

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.