Trump Doubles Tariffs on Canadian Steel and Aluminum Amid Escalating Trade War
President Donald Trump announced on Tuesday that he will be doubling tariffs on Canadian steel and aluminum imports to 50%, following Ontario’s recent decision to impose a 25% surcharge on electricity exports to the U.S. The tariffs will take effect on Wednesday morning. Trump also threatened additional measures, including a potential hike on auto tariffs set for April 2nd, which he claimed would "essentially, permanently shut down the automobile manufacturing business in Canada."
Ontario Premier Doug Ford responded by saying he would not back down until all U.S. tariffs on Canadian imports were lifted. Ford also suggested that Ontario could cut off electricity supply to U.S. states reliant on Canadian energy. “Is it a tool in our tool kit? 100%," he said. "And as he continues to hurt Canadian families, Ontario families, I won’t hesitate to do that.” He is set to speak with U.S. Commerce Secretary Howard Lutnick to discuss the escalating situation.
The trade dispute has rattled financial markets, with the S&P 500 dropping nearly 1% and the Toronto Stock Exchange’s S&P/TSX Composite index falling 0.5%. The Canadian dollar also weakened against the U.S. dollar. Analysts warn that Trump's tariffs could disrupt supply chains, increase costs for American consumers, and lead to job losses, particularly in industries reliant on Canadian aluminum and steel.
Trump also declared he would be announcing a “national emergency on electricity” in the states affected by Ontario’s surcharge. In a separate statement, he took aim at Canada’s agricultural tariffs, saying, “Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous.”
The escalating trade war between the two nations comes at a sensitive time, with fears of a U.S. recession growing. While Trump insists his tariffs will boost American industries, economists caution that the economic uncertainty could do more harm than good.
