Doug Ford, the Ontario Premier, announced Tuesday that his province's planned 25% tariff on electricity exports to the U.S would be paused.

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.

Ontario Premier Doug Ford says he’s suspending the province’s 25% surtax on U.S.-bound electricity, hours after President Trump threatened tariffs that could cripple the Canadian economy. Ford earlier on Tuesday said he wouldn’t budge on removing the surtax until Trump dropped his tariff threats.