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 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,

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.