MethodologyContact usSupportLogin
US President Trump has ordered US Commerce Secretary Howard Lutnick to double US tariffs on Canadian steel and aluminium from 25% to 50% in retaliation for a 25% tariff on electricity shipped into the US, imposed by Ontario Premier Doug Ford on Monday March 10, the president announced on the social media site Truth Social.
The energy tariff was imposed in retaliation to President’s Trump’s restoration of Section 232 tariffs on imports of steel and aluminium from Canada and Mexico that was announced last month and is slated to go into effect on Wednesday March 12.
President Trump announced the increase in tariffs for Canada on Tuesday March 11 on Truth Social, claiming Canada was “one of the highest tariffing nations anywhere in the world.”
“I will shortly be declaring a National Emergency on Electricity within the threatened area [of Minnesota, New York and Michigan.]This will allow the US to quickly do what has to be done to alleviate this abusive threat from Canada,” the president said in the post.
President Trump also called on Canada to “immediately drop their Anti-American farmer tariff of 250-390% on various US dairy products, which has long been considered outrageous.”
The US President promised additional tariff retaliation against Canada when it announces reciprocal tariffs on trading partners on April 2.
“If other egregious, long time tariffs are not likewise dropped by Canada, I will substantially increase, on April 2, the tariffs on cars coming into the US which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!” Trump wrote in his Truth Social post.
The US President reiterated his contention that Canada relies on the US for military protection and “pays very little for national security.”
“We are subsidizing Canada to the tune of more than $200 billion a year. Why? This cannot continue,” Trump said, restating his call for Canada “to be become the 51st state, a move that make all tariffs, and everything else, totally disappear” and lower taxes for Canadians.
“The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful nation anywhere in the world — And your brilliant anthem, ‘O Canada,’ will continue to play, but now representing a great and powerful state within the greatest nation that world has ever seen,” President Trump said.
Fastmarkets’ insights provide key data and analytics to forecast trends, manage risk, and optimize strategy. Find out more here.