Trump Pledges to Double Canadian Metal Tariffs Amid Electricity Dispute

In a significant escalation of trade tensions, President Donald Trump announced on Tuesday that tariffs on Canadian steel and aluminum would be doubled to 50%. This decision has raised concerns about its impact on the already faltering stock market.

Trump made the announcement via his social media platform, Truth Social. He instructed Commerce Secretary Howard Lutnick to implement the new tariffs starting Wednesday. The measure is a direct response to Ontario’s recent imposition of a 25% surcharge on electricity sold to several U.S. states, including Minnesota, Michigan, and New York.

“Why would our Country allow another Country to supply us with electricity, even for a small area?” Trump remarked in a follow-up post. He expressed outrage at Canada using electricity as a bargaining chip, threatening that Canada would face severe financial repercussions. “They will pay a financial price for this so big that it will be read about in History Books for many years to come!”

Additionally, Trump urged Canada to eliminate tariffs on U.S. dairy products. He warned that if Canada does not remove these tariffs, further tariffs on imported cars would be enacted on April 2, potentially crippling Canada’s automobile manufacturing sector. “Those cars can easily be made in the USA!” he stated.

The electricity surcharge announced by Ontario Premier Doug Ford aims to offset the effects of Trump’s recent tariff threats. Ford revealed that the surcharge would cost consumers in the affected U.S. states up to $400,000 per day. He criticized Trump’s tariffs, asserting that last-minute suspensions offered little remedy to the situation.

“It’s hurting families on both sides of the border,” Ford said. He pledged not to relent until the tariff threats were removed, emphasizing the need for a resolution. He even threatened to cut off Ontario’s electricity supply if the trade conflict escalates further.

Meanwhile, U.S. stock markets suffered their worst trading day of the year on Monday, continuing to decline on Tuesday amid mounting fears regarding the economic fallout from the tariff disputes. In his Tuesday morning posts, Trump suggested that Canada should consider becoming the 51st state. He claimed this could resolve tariff issues and enhance national security.

“The only thing that makes sense is for Canada to become our cherished Fifty First State,” Trump expressed. He argued that this move would eliminate all tariffs and significantly reduce Canadian taxes while bolstering security with greater military support from the U.S.