Book Offer
This will close in 10 seconds
US President Donald Trump has announced he will raise tariffs on Canadian steel and aluminium imports to 50%, starting tomorrow, threatening further increases if Canada does not meet his demands, which could “permanently shut down the automobile manufacturing business in Canada.”
In a post on his Truth Social account, Trump said this decision was in response to Ontario imposing a 25% tariff on electricity exports to the United States, describing Canada as “one of the highest tariffing nations anywhere in the world.”
“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,” Trump said.
The President also demanded that Canada immediately drop its “Anti-American Farmer Tariff” of “250% to 390% on various U.S. dairy products,” calling the current tariffs “outrageous.”
“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 US, which will, essentially, permanently shut down the automobile manufacturing business in Canada,” he warned, adding: “Those cars can easily be made in the USA”.
Trump also announced plans to declare a national emergency regarding electricity imports, aimed at countering what he called an “abusive threat from Canada.”
“I will shortly be declaring a National Emergency on electricity within the threatened area,” Trump added.
Addressing broader economic relations, Trump stated that the United States was subsidising Canada’s security by “more than $200 billion a year,” and questioned the rationale behind this arrangement.
“The only thing that makes sense is for Canada to become our cherished Fifty First State,” Trump said.
“This would make all tariffs, and everything else, totally disappear.”
He continued: “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.”
Trump concluded by suggesting that Canada’s national anthem, “O Canada,” would remain but would represent “a great and powerful State within the greatest nation that the world has ever seen”.
This announcement follows significant instability in global markets amid ongoing trade tensions. Yesterday, the S&P 500 and Nasdaq indices saw substantial losses, largely attributed to investor anxiety over escalating tariffs and potential economic repercussions.
Analysts have expressed concern that tariffs may drive up prices and impact economic growth, despite assurances from Commerce Secretary Howard Lutnick that no recession is imminent.
The United States recently imposed increased tariffs against China, doubling them to 20%, following ongoing disputes over trade balances and intellectual property.
Additionally, Trump initially imposed new 25% tariffs on goods from Mexico but exempted many items just two days later.
The EU has also faced tariff threats, contributing to uncertainty in global financial markets and prompting retaliatory tariffs from China on US agricultural products, including beef, pork, chicken, wheat, and soybeans, now facing new tariffs of 10% to 15%.
In response to the tariffs, European Commission President Ursula Von Der Leyen has threatened retaliation, saying the move “will not go unanswered”, while China has said that their country is ready for a trade war, “or any other kind of war” with the US.
This will close in 10 seconds