Donald Trump has announced he is doubling tariffs on Canadian steel and aluminum from 25% to 50% in response to Ontario’s recent tax hike on electricity exports to the U.S. The new tariffs will take effect on March 12 and are part of an escalating trade war between the two countries. Trump has also demanded that Canada immediately drop its tariffs on U.S. dairy products, which range from 250% to 390%, calling them “anti-American.”
In addition to the steel and aluminum tariffs, Trump has warned that if Canada does not make further trade concessions, he will impose even harsher tariffs on Canadian automobile exports by April 2. He claimed that this move could “essentially shut down” Canada’s auto industry, arguing that cars manufactured there could “easily be made in the USA.”
Trump also reiterated his idea of making Canada the 51st U.S. state, suggesting that such a move would eliminate all trade disputes. However, Canadian leaders, including newly elected Prime Minister Mark Carney, have strongly rejected this notion, vowing to resist economic pressure from the U.S.
The announcement has already impacted financial markets, with the U.S. stock market experiencing sharp declines following Trump’s tariff threats. With tensions continuing to rise, it remains to be seen how Canada will respond to this latest escalation in the trade conflict.
