Catenaa, Tuesday, March 11, 2025- US President Donald Trump said on Tuesday that he will double his planned tariff on all steel and aluminum to 50% from Canada as the trade war between two countries intensifies.
Trump said on social media that the increase of the tariffs set to take effect on Wednesday is a response to the 25% tariff the provincial government of Ontario put on electricity sold to the US
“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.
The U.S. president has given a variety of explanations for his antagonism of Canada, saying that his separate 25% tariffs are about fentanyl smuggling and voicing objections to Canada putting high taxes on dairy imports that penalize U.S. farmers.
But he continued to call for Canada to become part of the United States as a solution, a form of taunting that has infuriated Canadian leaders
He also threatened to “substantially increase” tariffs on cars coming into the United States on April 2 “if other egregious, long time Tariffs are not likewise dropped by Canada.”
The US stock market promptly fell following his social media post, S&P 500 fell by 0.87% and Dow 30 by 1.39% and Nasdaq by 0.58%.
Trump was set to deliver a Tuesday afternoon address to the Business Roundtable, a trade association of CEOs that during the 2024 campaign he wooed with the promise of lower corporate tax rates for domestic manufacturers.
But his tariffs on Canada, Mexico, China, steel, aluminum — with plans for more to possibly come on Europe, Brazil, South Korea, pharmaceutical drugs, copper, lumber and computer chips — would amount to a massive tax hike.
