President Donald Trump has put pressure on Canada, announcing late Monday that he would double the tariff on Canadian steel and aluminum to 50%, citing Ontario's move to tax U.S. electricity exports.
“This will come into effect tomorrow morning, March 12th.” Trump declared in a true social postemphasizes the urgency of the scale. The hike comes hours before the already planned 25% tariff is set to take effect in the middle of the night.
The president's move highlights his determination to stand up to Canada's unfair trade policy, particularly what he considers as a long-standing protectionist measure against major industries.
Trump also warned that if Canada does not roll back tariffs on dairy and other US agricultural products, it will impose even broader restrictions on Canadian exports starting April 2.
“Canada must quickly drop 250% to 390% anti-American farmers' tariffs on various US dairy products.
The White House is also preparing to increase tariffs on Canadian cars and auto parts. This is a move that could hit Canada's manufacturing sector seriously. In February, Trump delayed tariffs on Canadian goods, and last week he announced a month's extension for most imports, including auto parts, after consultations with US automakers.
“If other terrible, long-term tariffs do not fall similarly by Canada, the tariffs on cars coming to the US on April 2 will increase drastically, essentially shutting down Canadian car manufacturing forever. Those cars can be easily made in the US!” Trump said.
Trump also argued that the US is subsidizing Canada's national security.
The tariff escalation underscores Trump's longstanding view that Canada is disproportionately profiting from trade with the US while protecting the key industries behind its protectionist policy. Ontario's new electricity collection, framed by the Trump administration as an unfair attack on US consumers, was an immediate catalyst for the latest tariff hikes.
Electricity collections in Ontario are flashpoints, and Trump officials have portrayed it as an attack on U.S. consumers.
For years, critics of Trump's steel and aluminum tariffs have argued that Canada is a reliable supplier and that limiting metal exports causes unnecessary economic disruption. But Ontario's willingness to raise electricity prices in US provinces and threaten energy exports, in Trump's view, undermines that debate. It is clear now that Canada is willing to use its production capacity to influence US policy. This is something that can be done in response to policy, from tax rates to abortion to diplomacy.
“If Canada is willing to restrict energy exports, what will prevent other industries from weaponizing? The Trump administration argues that Washington cannot afford to gamble its economic and strategic security in Ottawa's good intentions,” said a Trump official who spoke about the conditions of anonymity.
