Donald Trump has declared a national emergency on electricity after Ontario Premier Doug Ford imposed a 25% tariff on Canadian electricity exports to Michigan, New York, and Minnesota. In response, Trump announced that U.S. tariffs on Canadian aluminum and steel would increase from 25% to 50%, with potential auto tariffs coming on April 2 that he claims could “permanently shut down” Canada’s automobile manufacturing industry.
Trump also suggested that the only way for Canada to escape the trade war would be to become the “cherished 51st state” of the U.S. He argued that if Canada agreed to join, all tariffs would be eliminated. Meanwhile, Ford warned that he is ready to “shut the electricity off completely” if the U.S. continues to escalate the economic conflict.
The escalating trade war has caused market instability, with the Dow experiencing significant losses following Trump’s latest tariff threat. While Trump insists that his policies are aimed at stopping fentanyl trafficking through Canada and Mexico, critics argue that they are damaging key industries and trade relationships.
Incoming Canadian Prime Minister Mark Carney responded to Trump’s remarks with strong opposition, declaring in his victory speech that “America is not Canada, and Canada never, ever will be part of America.” He vowed that Canada is ready to fight back, setting the stage for even more tensions between the two countries.
