WASHINGTON (Diya TV) —President Donald Trump made a statement on Tuesday that the United States will raise tariffs on Canadian steel and aluminum imports to 50% from 25%, effective immediately. This is a response to Ontario Premier Doug Ford’s latest move to slap a 25% surcharge on electricity exports to about 1.5 million U.S. households in New York, Michigan, and Minnesota, unless the U.S. withdraws its tariff threat.
In a message on his Truth Social site, President Trump said the higher tariffs are a response to what he sees as discriminatory trade practices by Canada, such as dairy and other farm product protections. He also warned he would “substantially increase” tariffs on Canadian cars beginning April 2 if these “egregious, long-time tariffs” are not removed.
Ontario Premier Ford is firm, stating he won’t give in until the U.S. tariffs are lifted. He was open to reducing power exports if required, reiterating that Ontario has leeway to retaliate against what he termed an unprovoked American attack on Canada.
The rising trade tensions have shaken financial markets. The S&P 500 index declined more than 1%, and the Canadian currency lost ground versus the U.S. currency. Economists and businesspeople fear that these tariffs will disorganize supply chains, raise consumer prices, and even cause a recession.
Incoming Canadian Prime Minister Mark Carney, who will be sworn in later this week, denounced President Trump’s actions as damaging to both Canadian and American workers. He vowed to keep Canada’s retaliatory tariffs in place until the U.S. agrees to fair and respectful trade negotiations.
The U.S. depends significantly on Canada for steel and aluminum imports, with Canada exporting close to 6 million metric tons of steel and 3.4 million metric tons of aluminum every year. The higher tariffs are likely to increase the cost of doing business and for consumers in the U.S., and might revive trade tensions between the two countries.
