In a surprising and rapid escalation of the tariff war, US President Donald Trump has ordered an increase in tariffs on Canadian steel and aluminum and threatened to impose more levies, after Ontario on Monday slapped a 25% surcharge on electricity exports to three US states.
In a lengthy post on his Truth Social social platform, Trump said he would “permanently shut down the automobile manufacturing business in Canada” if the country did not end unspecified tariffs it had placed on US goods.
Here is Trump's post: "Based on Ontario, Canada, placing a 25% Tariff on “Electricity” coming into the United States, I have instructed my Secretary of Commerce to ad 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. This will go into effect TOMORROW MORNING, March 12th. 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.... If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!"
Key highlights of today's escalation are as follows:
--Trump says he will double tariffs on Canadian steel and aluminium from 25% to 50%.
--Trump says this latest move is in retaliation to 25% tariffs Ontario placed on electricity it sends to northern US states.
--In response, Ontario's premier says "we will not back down" and calls on Trump to "stop the chaos".
--Trump says the tariffs will begin on Wednesday, adding that he'll declare "a national emergency on electricity" in those states.
--The latest escalation comes after the worst day of 2025 for US markets, fuelled by fears of Trump's aggressive tariffs on America's biggest trading partners.
