(The Center Square) – President Donald Trump said Tuesday that he would double tariffs on Canadian steel and aluminum in response to the 25% tariffs Ontario put on electricity going to the U.S.
Trump’s tariffs, of up to 50%, come amid an ongoing trade spat with Canada. On Monday, the Canadian province of Ontario announced it was going ahead with a 25% retaliatory tariff on electricity exports to the United States expected to affect 1.5 million homes and businesses in Michigan, Minnesota and New York. Ontario Premier Doug Ford estimated the tariffs would mean an additional $69 monthly charge for consumers in the three states.
Trump called Ford’s move an “abusive threat.”
“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump wrote on Truth Social. “This will go into effect TOMORROW MORNING, March 12th.”
Trump also said he planned to declare a national emergency in the three states.
“I will shortly be declaring a National Emergency on Electricity within the threatened area,” he said on Truth Social. “This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada.”
Trump further lashed out at Canada, promising to shut down its auto industry.
“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,” the president wrote. “Those cars can easily be made in the USA! Also, Canada pays very little for National Security, relying on the United States for military protection.”
Trump also suggested again that Canada become the 51st American state.
“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. Canadians’ 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 – And Canada will be a big part of that. The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World – And your brilliant anthem, ‘O Canada,’ will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!”
Trump’s trade policies have battered U.S. markets, leading to sharp declines across all three U.S. indexes on Monday. Stocks continued to slump Tuesday after Trump’s latest move.
Trump has promised that his tariffs would shift the tax burden away from Americans and onto foreign countries, but tariffs are generally paid by the people who import the products. Those importers then have a choice: They can either absorb the loss or pass it on to consumers through higher prices. He also promised tariffs would make America “rich as hell.” And he’s used tariffs as a negotiating tactic to tighten border security.
Trump granted temporary tariff relief to Canada and Mexico last week by exempting goods under the United States-Mexico-Canada Agreement from tariffs until April 2.
On April 2, Trump plans to announce broader reciprocal tariffs against countries that impose tariffs on U.S. goods or keep U.S. goods out of their markets through other methods.
