Washington: US President Donald Trump dramatically increased trade tensions with Canada by doubling planned tariffs on steel and aluminum imports to 50 percent in response to Ontario’s electricity export tariffs.
Trump ordered the Commerce Secretary to implement the additional 25 percent tariff by Wednesday morning.
The President also demanded Canada immediately drop its “Anti-American Farmer Tariff” of 250 percent to 390 percent on US dairy products. He further threatened to impose “substantially increased” tariffs on Canadian cars entering the US on April 2 if other tariffs were not rescinded. Trump also indicated he would declare a “National Emergency on Electricity” in affected US regions.
Ontario Premier Doug Ford, in a defiant response, vowed not to back down until all of Trump’s tariffs on Canadian imports were eliminated. Ford’s government had imposed a 25 percent tariff on electricity exports to New York, Michigan, and Minnesota.
Trump’s aggressive tariff policy sent shockwaves through financial markets. The Canadian dollar also weakened against the US dollar.
The new tariffs come as broader 25 percent levies on all steel and aluminum imports to the US from various countries, including Canada, Brazil, Mexico, and South Korea, are set to take effect on Wednesday. Trump has pledged to apply these tariffs “without exceptions or exemptions,” aiming to support struggling US industries. Economists are increasingly concerned that Trump’s tariff-focused agenda will trigger a recession.
