Source: The Washington Post / Getty
President Donald Trump announced on social media that he is doubling tariffs on Canadian steel and aluminum to 50%, citing rising electricity prices from Ontario as a key factor.
“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” the president wrote on Truth Social, saying those higher tariffs will go into effect Wednesday.
The president also urged Canada to remove tariffs on various U.S. dairy products and announced plans to declare a “national emergency on electricity” in response to Canada’s electricity surcharge. The surcharge specifically impacts New York, Minnesota, and Michigan—states that share a border with Ontario.
The announcement led to a stock market decline, sparking fears of a potential recession. While Trump insists the tariffs will strengthen the U.S. economy, experts warn they could slow economic growth and increase uncertainty for businesses.
Despite concerns, the White House emphasized that the tariffs have already led to new investments in U.S. manufacturing, highlighting commitments from Honda and Volkswagen to expand production in the country.