Trump says U.S. will double steel, aluminum tariffs in reponse to Ontario’s electricity levy
The ongoing trade dispute between the United States and Canada has escalated once again, with U.S. President Donald Trump announcing plans to intensify tariffs on Canadian steel and aluminum. This decision comes in response to Ontario imposing a surcharge on electricity flowing south of the border.
In a post on his Truth Social platform, Trump stated that he has instructed his administration to double tariffs on steel and aluminum to 50 per cent starting Wednesday. This move is a direct response to Ontario’s decision to place a 25 per cent tariff on electricity entering the United States. Trump justified his decision by calling Canada one of the “highest tariffing nations anywhere in the world.”
Furthermore, Trump declared a “National Emergency on Electricity” in regions impacted by Ontario’s electricity levy, specifically mentioning New York, Michigan, and Minnesota. He even went as far as suggesting the annexation of Canada to make it the “Fifty First State” of the United States.
Ontario Premier Doug Ford had announced the surcharge on Ontario-generated electricity purchased by American states, estimating it to generate up to $400,000 per day. This revenue would be used to reduce power bills for ratepayers in Ontario. Ford also threatened to entirely cut off the flow of electricity to the U.S., a drastic measure that would require Ontario to significantly reduce its own power generation.
Trump’s decision to intensify tariffs on Canadian steel and aluminum is the latest development in a trade war that he initiated shortly after taking office. Despite the longstanding economic, cultural, and military alliance between the two countries, Trump’s administration has imposed tariffs on most Canadian goods and energy.
The move to intensify tariffs goes against the terms of the Canada-U.S.-Mexico Agreement (CUSMA), a free trade deal that Trump himself praised as the best and most important trade deal ever made by the USA. Both Ontario and the federal government have vowed to implement retaliatory measures until the tariffs are completely lifted.
In addition to the surcharge on electricity, Ontario has also removed American alcohol from LCBO shelves and banned U.S. companies from government procurement contracts. The federal government has imposed retaliatory tariffs on $30 billion worth of U.S. goods in response to Trump’s trade policies.
The escalating trade tensions between the United States and Canada highlight the complexities of international trade relations and the impact of political decisions on both countries’ economies. It remains to be seen how this latest development will affect the ongoing trade dispute and the relationship between the two neighboring nations.
