Trump doubles u s tariffs on canadian steel and aluminium

Trump doubles u s tariffs on canadian steel and aluminium

U.S. President Donald Trump said Tuesday that he will double his planned tariffs on steel and aluminium from 25% to 50% for Canada, escalating a trade war with the U.S.’s northern neighbour.

Mr. Trump said on social media that the increase of the tariffs set to take effect on Wednesday is a response to the price increases that the provincial government of Ontario put on electricity sold to the U.S.

‘I have instructed my Secretary of Commerce to add 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,’ Mr. Trump posted Tuesday on Truth Social.

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.

51st State

‘The only thing that makes sense is for Canada to become our cherished Fifty First State,’ Mr. Trump posted on Tuesday. ‘This would make all Tariffs, and everything else, totally disappear.’

The U.S. stock market promptly fell following his social media post, triggering more concerns after a brutal sell-off on Monday that puts Mr. Trump under pressure to show he has a legitimate plan to grow the economy instead of perhaps pushing it into a recession.

Mr. 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.

The stock market’s vote of no confidence over the past two weeks puts the President in a bind between his enthusiasm for taxing imports and his brand as a politician who understands business based on his own experiences in real estate, media and marketing.

The White House after the markets closed on Monday highlighted that the tariffs were prompting companies such as Honda, Volkswagen and Volvo to consider new investments in U.S. factories.