Trump Doubles Tariff on Canadian Steel and Aluminum

​President Donald Trump has announced a significant escalation in trade measures against Canada, declaring a 50% tariff on all steel and aluminum imports from the country. This decision, set to take effect on Wednesday, March 12, 2025, comes in direct response to the province of Ontario’s recent 25% surcharge on electricity exports to the United States. ​

In a statement on his social media platform, Truth Social, President Trump expressed his dissatisfaction with Ontario’s actions, labeling Canada as “one of the highest tariffing nations anywhere in the world.” He further demanded the immediate removal of Canada’s substantial tariffs on U.S. dairy products, which range between 250% and 390%. Additionally, the President threatened to significantly increase tariffs on Canadian automobiles entering the U.S. starting April 2 if these longstanding tariffs are not eliminated. ​

The President also indicated plans to declare a national emergency concerning electricity in the affected regions, underscoring the gravity of the situation

Ontario Premier Doug Ford has responded firmly, stating that he will maintain the electricity surcharge until all U.S. tariffs on Canadian imports are permanently removed. He emphasized that Ontario would not back down in the face of these measures. ​

The financial markets have reacted negatively to these developments. The S&P 500 index experienced a decline, reflecting investor concerns over escalating trade tensions and their potential impact on the global economy. ​

This move marks a significant intensification of the ongoing trade dispute between the United States and Canada, with potential implications for various sectors, including agriculture and the automotive industry. The situation remains fluid, and further developments are anticipated as both nations navigate this complex economic landscape.