U.S. President Donald Trump has signaled privately that he is going to stick with tariffs, The New York Times reported on Tuesday, after Commerce Secretary Howard Lutnick said earlier in the day that Trump may reach a middle ground with Canada and Mexico on tariffs.

President Trump has escalated tensions with Canada by threating to impose significant tariffs on imports like dairy and lumber. In retaliation, Canada has announced its own tariffs on U.S. goods. The situation is now further complicated by political developments in Canada where they’ve elected a new prime minister.

The United States’s trade war with Canada took a series of dizzying turns on Tuesday with threats, posturing, and what appeared to be an eventual lowering of temperatures over electricity surcharges.

Doug Ford says Ontario will suspend its surcharge on electricity exports to the U.S. and he will travel to Washington, D.C. for trade talks.

Ontario's Doug Ford imposed a 25% surcharge on electricity exports to Michigan, Minnesota, and New York, provoking a swift response from President Trump.

Ontario Premier Doug Ford on Tuesday said he was temporarily suspending his province's planned 25% surcharge on electricity exported to the United States after U.S. Commerce Secretary Howard Lutnick agreed to renewed trade talks.