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Trump hits back at Canada with additional 25% tariff on steel, aluminum
President Trump ordered an additional 25% tariff on Canadian steel and aluminum imports Tuesday in response to Ontario charging Americans in parts of three border states 25% more for electricity.
The tariff will go into effect Wednesday morning and bring the total US levy on Canadian steel and aluminum to 50% of those commodities’ prices.
Trump, 78, also demanded that Canada eliminate their 250% to 390% tariff on various American dairy products when purchases previously negotiated during his first term, and threatened to decimate the auto industry of America’s northern neighbor.
The president’s proclamation further rattled uneasy stock markets, with the Dow Jones Industrial Average plummeting nearly 600 points before regaining some ground in late-morning trading.
On Monday, Ontario Premier Doug Ford slapped a 25% surcharge on energy exports to the Canadian province’s three US state customers: New York, Michigan and Minnesota. Ford has also threatened to cut off the exports entirely.
“I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada,â€?Trump wrote on Truth Social, referring to the border states impacted by Ontario’s tariff.
“If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada.�/p>
Trump also railed against the reliance on foreign countries for electricity in small parts of the US, and slammed Canada for “stooping so low as to use ELECTRICITY that so affects the life of innocent people, as a bargaining chip.”
He further vowed to make Canada “pay a financial price for this so big that it will be read about in History Books for many years to come.”
Trump is planning to roll out reciprocal tariffs on imports from around the world, including Japan and the European Union, early next month.
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Last week, the president slapped a 25% across-the-board tariff on Canada and Mexico after the two neighbors failed to heed his demands to curtail the flow of fentanyl and illegal immigration into the US. Canada promptly responded with retaliatory measures, including roughly 25% across-the-board tariffs on about C$30 billion ($20.7 billion) worth of American goods.
“I apologize to the American people that President Trump decided to have an unprovoked attack on our country,” Ford told MSNBC Tuesday morning after promising the provincial and federal government will be “relentless” and “won’t back down” until Washington withdraws its duties.
Ford also said Ontario and Canada would have an “appropriate response” to Trump’s Tuesday announcement, pointing out that America only manufactures about 16% of the aluminum it uses for cars and trucks.
“If we go into a recession,” Ford warned, “it’s self-made by one person.”
Democratic New York Gov. Kathy Hochul has ordered a review of the situation and publicly ripped Trump for slapping the tariffs against Canada.
“These federal tariffs have been poorly conceived from the start: crafted in secret with no transparency and no clear economic rationale, they’ve only served to destabilize our capital markets and create uncertainty among New York families and businesses,�Hochul said in a statement Monday.
Shortly after rolling out the massive levies, Trump eased up on some of the tariffs last week, implementing a one-month pause for automakers and imports subject to the United States-Mexico-Canada Agreement (USMCA) �which covers roughly 38% of imports from Canada, according to a White House official.
That pause on USMCA-related imports is effective until April 2.
The president also admonished Canada for not contributing more to its national security, a longstanding grievance he has with many US allies, particularly in Europe.
“Canada pays very little for National Security, relying on the United States for military protection,” Trump bemoaned. “We are subsidizing Canada to the tune of more than 200 Billion Dollars a year. WHY??? This cannot continue. The only thing that makes sense is for Canada to become our cherished Fifty First State.”
“This would make all Tariffs, and everything else, totally disappear. Canadiansâ€?taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem, and the greatest and most powerful nation in the World will be bigger, better and stronger than ever.”
Trump then offered to allow Ottawa’s anthem “O Canada” to continue to play if the northern neighbor joins the US.
The tariffs Trump has implemented on Canada and Mexico as well as the 20% tariff on China over fentanyl, impact roughly $1.5 trillion worth of imports annually.
Canada, China and Mexico are the three largest US trading partners.
