Trump Increases Tariff on Canadian Imports
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Synopsis
In a significant escalation of the trade war, President Trump has announced a doubling of tariffs on steel and aluminum imports from Canada, citing retaliation for Ontario's surcharge on electricity exports to the U.S.
Key Takeaways
- Trump doubles tariffs on Canadian steel and aluminum.
- New tariffs rise to 50% effective March 12.
- Canada's electricity surcharge prompted the tariff increase.
- Trump threatens further tariffs on cars if Canada doesn't comply.
- Criticism of Canada's defense spending highlighted.
Washington, March 11 (NationPress) US President Donald Trump on Tuesday intensified the trade conflict with Canada by doubling the tariffs imposed on steel and aluminum imports from the nation.
Trump declared an additional 25 percent tariff on Canadian steel, raising it to 50 percent, in a lengthy post on his social media platform Truth Social. This move came in response to Ontario, a province in Canada, implementing a 25 percent surcharge on electricity exports to the American states of New York, Michigan, and Minnesota as a protest against Trump's tariffs.
The updated tariff rates are set to commence on Wednesday.
"Following Ontario, Canada, imposing a 25 percent tariff on 'electricity' entering the United States, I have directed my Secretary of Commerce to enforce an additional 25 percent tariff, bringing it to 50 percent, on all steel and aluminum imports from Canada, one of the highest tariffing nations globally," Trump stated on Truth Social. "This will be effective tomorrow morning, March 12th."
Trump continued: "Canada must also promptly eliminate their Anti-American Farmer Tariff of 250 percent to 390 percent on various US dairy products, which has been deemed outrageous. I will soon declare a National Emergency on Electricity in the affected area. This will enable the US to swiftly address this abusive threat from Canada. Should Canada fail to remove other egregious, longstanding tariffs, I will significantly increase, by April 2nd, the tariffs on automobiles entering the US, which would effectively cripple the automobile manufacturing industry in Canada."
In February, Trump reinstated the 25 percent tariff on all steel imports that had been imposed during his first term and raised the duty on aluminum imports from 10 percent to 25 percent. He announced a second round of tariff increases aimed at Canada, Mexico, and China that began on March 4, but are currently on hold, except for the tariffs on Chinese goods. A reciprocal tariff system is set to be implemented on April 2, imposing the same duty rates on American imports as those imposed by its trading partners.
Trump also criticized Canada for its defense spending, stating: "Canada contributes very little towards National Security, depending heavily on the United States for military protection. We are subsidizing Canada by more than $200 Billion annually. Why??? This cannot continue."
Furthermore, he reiterated his threats to transform Canada into the 51st state of the US: "The only logical step is for Canada to become our beloved Fifty-First State. This would eliminate all tariffs and related issues. Canadians’ taxes would be greatly reduced, and they would enjoy enhanced security, both militarily and otherwise, unlike ever before. The Northern Border problem would cease to exist, and the most powerful nation in the world would grow larger and stronger than ever, with Canada being a significant part of it. The artificial separation established many years ago would finally vanish, resulting in the safest and most beautiful nation globally — and your magnificent anthem, 'O Canada,' would continue to resonate, now representing a great and powerful state within the greatest nation the world has ever known!"
