Trump News - Washington, D.C. : President Donald Trump escalated his trade offensive against Canada today, ordering an additional 25% tariff on Canadian steel and aluminum imports—raising the total to 50%—in a surprise move that jolted markets and reignited fears of a spiraling trade war.
Highlights
- Trump doubles tariffs on Canadian steel and aluminum to 50%, effective immediately.
- Move retaliates against Ontario’s 25% electricity surcharge, threatening U.S. power supply.
- Canada vows swift countermeasures, risking a deeper North American trade war.
BREAKING: Trump Slaps Additional Tariffs on Canada
Announced Tuesday afternoon, March 11, the decision targets Canada’s metals sector and responds to Ontario Premier Doug Ford’s 25% surcharge on electricity exports, a small but symbolic fraction of which powers Michigan and New York.
Trump’s latest salvo, paired with a vow to “permanently shut down” cross-border trade loopholes, deepens a rift with America’s northern neighbor just days after he paused broader tariffs, underscoring his unwavering view of tariffs as a “vital tool” for U.S. leverage.
A Sudden Tariff Hike
The White House confirmed Trump directed Commerce Secretary Howard Lutnick to impose the additional tariffs effective midnight tonight, building on the 25% duties enacted March 4 under the International Emergency Economic Powers Act (IEEPA) to curb fentanyl and migration flows.
“Canada’s playing games with our energy and jobs,” Trump declared on Truth Social, citing Ford’s March 5 threat to cut power to 1.5 million U.S. homes—though only 250 MW of Ontario’s 4,500 MW exports reach the U.S., per the Department of Energy. The steel and aluminum hike, detailed in a Reuters breaking post Tuesday, aims to punish Canada’s $15 billion metals trade, a key U.S. supply chain link.
The move reverses last week’s reprieve, when Trump’s March 7 executive orders delayed 25% tariffs on USMCA-compliant goods until April 2, sparing 38% of Canada’s $450 billion annual exports. That pause followed Canada’s $1.3 billion border security pledge, but today’s escalation—mirroring Trump’s first-term steel tariffs—signals impatience with Prime Minister Justin Trudeau’s countermeasures, including $30 billion in retaliatory tariffs on U.S. goods since March 4.
Canada’s Retaliation Looms
Canada’s response was immediate and fierce. Trudeau, speaking from Ottawa Tuesday evening, called the 50% metals tariffs “an affront to our partnership” and promised “proportionate action” within days, potentially targeting U.S. exports like oil ($100 billion annually) or autos.
Finance Minister Dominic Leblanc hinted at expanding Canada’s $155 billion tariff plan—already set to hit U.S. motor vehicles and beef in 21 days if March 4 duties persist—while Ford doubled down, urging Trump to “feel the pain” of Ontario’s 12,000 steel jobs. The Canadian dollar slid 1.5% against the U.S. dollar Tuesday, per Bloomberg, as markets braced for fallout.
U.S. industries sounded alarms: the American Iron and Steel Institute warned of higher costs for manufacturers reliant on Canada’s 7 million tons of annual steel imports, while automakers—fresh off a March 5 tariff reprieve—lobbied Lutnick to reconsider. The Dow, already down 300 points Friday amid tariff chaos, shed another 200 points Tuesday afternoon, reflecting fears of disrupted supply chains just as Trump’s team hosts crypto elites and juggles Iran talks.
A Trade War Rekindled
Trump’s tariff obsession—rooted in his 1980s trade critiques and first-term wins like the USMCA—faces a critical test. The 50% metals duties, atop 20% Chinese tariffs and paused USMCA levies, signal a multi-front strategy, yet allies like Canada chafe at the collateral damage. Trudeau’s March 4 charge of Trump “appeasing Putin” while warring with allies.
Economists warn of a 0.5% GDP hit to both nations if retaliation escalates, per the Federal Reserve Bank of Atlanta, but Trump remains defiant, teasing reciprocal dairy tariffs next. As Canada plots its counterpunch, this latest tariff twist—effective tonight—promises a volatile spring, with April 2 looming as the next trade reckoning.
