President Trump said Tuesday that his administration will increase planned steel and aluminum tariffs on Canada in response to the electricity surcharge imposed by the Ontario government in the latest escalation of the growing trade war.
The Trump administration plans to impose a full 25% tariff on steel and aluminum on Wednesday, but Trump told Commerce Secretary Howard Luttonick that it has directed tariffs on Canadian imports of metals from 25% to 50%.
The president pointed to plans his administration will threaten additional tariffs on Canada in the coming weeks and impose mutual tariffs on all countries that have fulfilled US product obligations from April 2nd. These included tariffs on cars that Trump claimed was “permanently shutting down Canadian car manufacturing.”
Ontario's government announced Monday that it would apply a 25% extra charge for electricity exports to three US provinces in response to Canadian US tariffs. According to the Ontario government, the additional fees will affect the electricity sales of 1.5 million homes and businesses in Michigan, Minnesota and New York. In total, it costs up to $400,000 per day.
Trump has said he will declare a national emergency to reduce the impact of the surcharges in truth.
He continued his argument that Canada will become the 51st state. It was completely rejected.
“The only thing that makes sense is that Canada will become our precious 50 first states. This will incur all the tariffs and all else will disappear for good,” Trump wrote. “Canadians' taxes will be cut very significantly. They will be safer, militarily, otherwise there will be no more issues with the north border than ever, and the largest and most powerful nation in the world is bigger and stronger than ever, Canada will be a big part of that.”
“The artificial lines of separation that were drawn out years ago eventually disappear, and we have the world's safest and most beautiful country. And while your wonderful national anthem “O Canada” continues to play, it now represents the greatest powerful nation of the greatest country the world has ever seen! ” he added.
Earlier this month, Trump announced a 25% tariff on imports from Canada and Mexico, but he announced a one-month exemption for auto parts and other products that fall under the US-Canada Trade Agreement (USMCA) signed in 2020 during Trump's first term.
Uncertainty over Trump's tariff plans has led to a slump in the stock market, and the president has not ruled out the possibility of a recession this year.
