U.S. President Donald Trump has escalated the trade conflict with Canada, announcing a sharp increase in tariffs on Canadian steel and aluminum. The new tariffs, set to take effect on Wednesday, March 12, will double from 25% to 50% in response to Ontario’s recent decision to impose a 25% surcharge on electricity exports to several U.S. states.
In a statement, Trump justified the move, calling Canada “one of the highest tariffing nations anywhere in the world.” He also revived his controversial suggestion that Canada should become the 51st U.S. state, a remark that outraged Canadian leaders.
Trump has cited various reasons for his increasingly aggressive stance toward Canada, ranging from concerns over fentanyl smuggling to grievances about high tariffs on U.S. dairy exports. However, his latest move has rattled financial markets, deepening fears of an economic downturn.
The U.S. stock market reacted swiftly, with the Nasdaq suffering its worst decline since September 2022, dropping 4%. The sell-off continued into Tuesday morning, with the Dow falling 1.2% and both the S&P 500 and Nasdaq also tumbling.
Ontario Premier Doug Ford didn’t hold back in his response, urging American business leaders to push back against Trump’s trade policies.
“We will be relentless,” Ford said. “We need those CEOs to actually get a backbone and stand in front of him and tell him, ‘This is going to be a disaster. It’s mass chaos right now.’”
Ford has previously hinted at cutting off U.S. energy exports from Canada as a countermeasure. Meanwhile, Trump has condemned the use of electricity as a “bargaining chip and threat,” warning that Canada “will pay a financial price for this so big that it will be read about in history books for many years to come.”
