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

The U.S. president ratcheted up a trade war with America's northern neighbor after Ontario's surcharge on electricity sold to the United States.

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.

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,

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.