- In retaliation for Ontario’s electricity tax, Trump doubled tariffs on Canadian steel and aluminum.
- Markets tumbled, with the S&P 500 down 1% and economists warning of rising recession and inflation risks.
- Trump threatened further tariffs on Canadian auto imports by April 2, demanding Canada drop high dairy tariffs.
President Donald Trump has intensified his trade war with Canada, imposing a 50% tariff on all steel and aluminum imports from its northern neighbor.
The move, which takes effect Wednesday morning, comes in retaliation to Ontario’s 25% tax on electricity exports to the U.S.
Trump, posting on Truth Social, accused Canada of unfair trade practices.
"Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various US dairy products," he demanded, calling these measures “outrageous.”
He further threatened to declare a National Emergency on Electricity and warned of increasing tariffs on Canadian auto imports by April 2.
Ontario Premier Doug Ford responded defiantly, stating he “would not back down” unless all U.S. tariffs were lifted.
Markets reacted sharply to Trump’s tariff escalation. The S&P 500 dropped nearly 1%, the Toronto Stock Exchange slid 0.5%, and the Canadian dollar weakened against the U.S. dollar.
Analysts warn that broader 25% tariffs on global steel and aluminum imports—affecting Mexico, Brazil, and South Korea—could trigger a recession and fuel inflation.
But, is Trump’s protectionist push a calculated strategy or reckless economic brinkmanship?
Trump may be betting on domestic gains, but global retaliation could prove costly.
Edited by Harshajit Sarmah
