In a sharp ratcheting up of trade tensions, US President Donald Trump stated that he will double the tariffs on imports of Canadian steel and aluminum from 25% to 50%. The boost is over and above existing 25% tariffs applied on imports of steel and aluminum from countries including Brazil, Mexico, and the United Arab Emirates.
Trump explained the action as a response to Ontario’s just-imposed 25% surcharge on electricity exports to the US. He announced on Truth Social that Canada is “one of the highest tariffing nations” and ordered the Commerce Department to implement the higher tariffs.
Canada, historically one of America’s closest allies and foremost trading partner, is now embroiled in an escalating feud with Trump. Newly installed Canadian Prime Minister Mark Carney reacted defiantly, promising to fight for the “Canadian way of life” and declaring Canadians “always ready” to hold their ground.
Industry observers say that Canada provides about 50% of the US imports of aluminum and 20% of steel. Economists caution that the higher tariffs may have far-reaching economic implications for both countries. Trump also warned that he would declare a national emergency in the regions affected by the spike in electricity prices and threatened to impose further tariffs on Canadian car imports from April 2.
The most contentious aspect of Trump’s remark was his proposal that Canada be made the 51st US state. He contended that annexation would do away with tariffs, reduce Canadian taxes, improve security, and address border issues.
Trump’s comments have outraged Canadian citizens and officials, who see them as an insult to their sovereignty. With tensions at a record high, the next move by both governments could determine the future of US-Canada relations.
