In a dramatic escalation of trade tensions, President Donald Trump announced that the United States will double tariffs on Canadian steel and aluminum imports to 50%, effective Wednesday. This decision comes in direct response to Ontario Premier Doug Ford‘s recent imposition of a 25% surcharge on electricity exports to three U.S. states: New York, Michigan and Minnesota.
President Trump has also called for the removal of Canada‘s substantial tariffs on U.S. dairy products, which range from 250% to 390%. He further threatened to declare a national emergency concerning electricity in the affected areas and warned of a potential substantial increase in tariffs on Canadian automobiles entering the U.S. if Canada does not reduce its longstanding tariffs on various American products by April 2.
Trump also stated that “The only thing that makes sense is for Canada to become our cherished Fifty First State.”
CNBC has the latest updates, including Ford’s response:
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Minutes after Trump sent the post, Ford said he would keep his countermeasure on U.S. energy in place.
“We will not back down. We will be relentless,” Ford said on MSNBC. “I apologize to the American people that President Trump decided to have an unprovoked attack on our country, on families, on jobs, and it’s unacceptable.”
The Tuesday morning announcement has already impacted financial markets, with the S&P 500 index falling by 0.6% and the Dow Jones Industrial Average dropping by 1%. Economists express concerns that these escalating tariffs could lead to higher consumer prices and potentially trigger a recession.
The announcement has intensified fears of a global trade war, with potential repercussions for economic growth. European markets have also been affected, with the FTSE 100 dropping to its lowest point since January.
This is a breaking news story. Please check back for updates.
