United States President, Donald Trump, on Tuesday, announced a sharp escalation in trade tensions with Canada by doubling tariffs on all steel and aluminum imports from the country to 50 percent.
The move comes in retaliation to the Ontario government’s decision to impose a 25 percent tariff on its electricity exports to the United States.
Trump made the announcement in a post on his Truth Social platform, revealing that he had directed the U.S. Commerce Secretary to implement an additional 25 percent tariff on the metals, to take effect Wednesday morning.
“Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous. I will shortly be declaring a National Emergency on Electricity within the threatened area,” Trump wrote.
He further warned that he would “substantially increase” tariffs on Canadian automobiles entering the United States by April 2, unless Canada lifts what he described as “other egregious, long-time Tariffs.”
Ontario Premier Doug Ford responded swiftly, using a post on X to signal defiance over Trump’s new tariffs. Ford, whose government has raised electricity prices for export to New York, Michigan, and Minnesota, said he would not yield until all U.S. tariffs on Canadian goods are removed permanently. “He would not back down until all of Trump’s tariffs on Canadian imports to the U.S. were ‘gone for good.’”
The latest tariff salvo sent a ripple through global markets. The benchmark S&P 500 index dropped nearly one percent as investors expressed concern that the rising tariffs could drag on U.S. economic growth and reignite inflation pressures.
Canada’s S&P/TSX Composite index slipped about 0.5 percent, while the Canadian dollar weakened against the U.S. dollar.
Trump’s decision comes ahead of broader 25 percent levies scheduled to begin Wednesday on all steel and aluminum imports from countries previously exempted under special carve-outs.
The new tariffs will affect imports from Canada, Brazil, Mexico, South Korea and others, with Trump insisting they will be enforced “without exceptions or exemptions,” a strategy he says will revive struggling U.S. metal industries.
Since assuming office in January, Trump has pursued aggressive tariff measures that have rattled financial markets and raised fears among economists.
A recent small business survey showed sentiment weakening for the third consecutive month, erasing the post-election confidence boost.
Economists across North America have raised concerns over the economic fallout. In a Reuters poll last week, 70 out of 74 economists surveyed in Canada, the U.S. and Mexico said the risk of recession had increased due to the uncertainty created by the tariffs.
They also warned that inflationary pressures in the U.S. are also expected to rise.
ALSO READ TOP STORIES FROM NIGERIAN TRIBUNE
and then