Trump doubles tariff on Canadian imports, threatens more tariffs
US President Donald Trump on Tuesday intensified the trade conflict with Canada by doubling tariffs on steel and aluminum imports from the country to 50%.
Trump announced the additional 25% tariff on Canadian steel in response to Ontario’s decision to impose a 25% surcharge on electricity exports to the US states of New York, Michigan, and Minnesota. The new tariffs will take effect from Wednesday.
“Based on Ontario, Canada, placing a 25 per cent tariff on ‘electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an additional 25 per cent tariff, to 50 per cent, on all steel and aluminum coming into the United States from Canada, one of the highest tariffing nations anywhere in the world,” Trump wrote on his social media platform Truth Social.
The US President also demanded that Canada drop its 250% to 390% tariffs on various American dairy products, calling them “outrageous.” He warned that failure to comply would lead to increased tariffs on Canadian automobiles starting April 2, which could significantly disrupt Canada’s auto manufacturing sector.
Trade tensions escalate
Trump’s tariff escalation follows his earlier decision in February to reinstate a 25% tariff on all steel imports and raise aluminum import duties from 10% to 25%. A second round of tariff hikes targeting Canada, Mexico, and China took effect on March 4 but are currently on hold, except for Chinese imports.
A reciprocal tariff system, set to take effect from April 2, will apply the same rates on US imports as the duties imposed on American exports by its trading partners.
Trump criticizes Canada’s defense spending
Trump also criticized Canada’s low defense spending, claiming that the US is subsidizing Canada’s security at a cost of over $200 billion per year.
“Canada pays very little for national security, relying on the United States for military protection. We are subsidizing Canada to the tune of more than 200 billion dollars a year. Why??? This cannot continue,” Trump said.
Calls for Canada to become the 51st US state
In a controversial statement, Trump suggested that the only long-term solution would be for Canada to become the 51st state of the United States.
“The only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all tariffs, and everything else, totally disappear. Canadians’ taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before,” Trump wrote.
He added that combining the two countries would create the “greatest and most powerful nation in the world.”
Trump’s tariff escalation is expected to strain US-Canada trade relations, which had shown signs of improvement after the signing of the United States-Mexico-Canada Agreement (USMCA) in 2020.
