Trump raises tariffs on Canadian steel and aluminum to 50 percent

President Donald Trump announced on Tuesday that his administration will impose an additional 25 percent tariff on Canadian steel and aluminum imports, bringing the total duty to 50 percent. The new tariff policy is set to take effect on Wednesday morning.

Trump stated that the decision was made in response to Ontario’s recent move to impose a 25 percent tax on electricity exports to the United States. Ontario Premier Doug Ford implemented that tax as a countermeasure to Trump’s previous 25 percent tariffs on Canadian imports.

In a post on Truth Social, Trump directed the Secretary of Commerce to increase tariffs on Canadian steel and aluminum, referring to Canada as “one of the highest tariffing nations anywhere in the world.” The announcement contributed to market declines, with the Dow Jones Industrial Average falling by more than 500 points. The S&P 500 and Nasdaq Composite also recorded losses of 0.8 percent and 0.4 percent, respectively.

Following Trump’s statement, Ford said that Ontario would maintain its tax on U.S. electricity exports. He described Trump’s tariff decision as an “unprovoked attack” on Canada and its economy. Ford added that U.S. businesses should oppose the trade measures, calling them a threat to economic stability.

Trump has previously introduced and adjusted tariffs on Canada and Mexico multiple times. In addition to the increased tariffs on steel and aluminum, he warned that further tariffs on Canadian auto imports could be imposed on April 2. He stated that such a measure would severely impact Canada’s automotive industry.

Trump also called for Canada to remove what he described as an “Anti-American Farmer Tariff” on certain U.S. dairy products. Additionally, he announced that he may declare a “National Emergency on Electricity” to address what he characterized as a threat from Canada’s policies.

The trade dispute has contributed to growing tensions between the two countries. Former Canadian Prime Minister Justin Trudeau accused Trump of attempting to weaken Canada in order to justify a push for annexation. Trump has previously suggested that Canada should become the 51st state, a sentiment he repeated in his Truth Social post. He claimed that making Canada a U.S. state would eliminate tariffs and lower taxes for Canadians.

The White House did not respond to requests for further comment on Trump’s statements.