Donald Trump has escalated the trade war with Canada by threatening to “permanently shut down” the country’s automobile manufacturing industry if Ottawa does not eliminate its tariffs on U.S. dairy products. In a statement on Truth Social, Trump announced that he is doubling tariffs on Canadian steel and aluminum from 25% to 50% and warned that more economic measures would follow if Canada did not comply with his demands.
Trump specifically called out Canada’s tariffs on U.S. dairy, which range from 250% to 390%, calling them “outrageous.” He also declared a national emergency on electricity in response to Ontario Premier Doug Ford’s 25% tax increase on power exports to the U.S. Trump stated that if Canada does not make “extreme changes” by April 2, he will increase tariffs on Canadian cars to a level that would effectively cripple the industry.
In a controversial addition to his statement, Trump reiterated his belief that Canada should become the “cherished 51st state” to avoid trade conflicts with the U.S. He argued that this would eliminate tariffs, lower taxes for Canadians, and provide stronger military security. However, this suggestion has been widely rejected by Canadian leaders, including newly elected Prime Minister Mark Carney, who has vowed to fight back against Trump’s economic aggression.
As tensions between the two countries continue to rise, analysts warn that the trade war could have severe consequences for both economies. With neither Trump nor Canadian officials backing down, the next few weeks could be critical in determining how far this economic conflict will escalate.
