Trump imposes additional tariffs in response to Ontario’s electricity surcharge
President Trump on Tuesday ordered an additional 25% tariff on Canadian steel and aluminum imports, retaliating against Ontario’s decision to charge Americans in three border states 25% more for electricity.
The new tariff, set to take effect Wednesday morning, will bring the total U.S. levy on Canadian steel and aluminum to 50% of those commodities’ prices.
Trump demands Canada drop tariffs on U.S. dairy products
Trump, 78, also insisted that Canada eliminate its 250% to 390% tariffs on various American dairy products exceeding the limit previously negotiated during his first term.
He further threatened to cripple Canada’s auto industry, warning of massive tariffs on imported vehicles if Canada fails to comply.
Market reacts as Trump declares ‘National Emergency on Electricity’
The Dow Jones Industrial Average saw a sharp drop of nearly 600 points following Trump’s announcement before recovering some ground in late-morning trading.
Trump’s response comes after Ontario Premier Doug Ford imposed a 25% surcharge on energy exports to New York, Michigan, and Minnesota on Monday, with an added threat to cut off exports entirely.
“I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S. to quickly address this abusive threat from Canada,” Trump wrote on Truth Social, referencing the border states impacted by Ontario’s policy.
Trump warns of auto industry shutdown in Canada
“If other egregious, long-standing tariffs are not also dropped by Canada, I will substantially increase tariffs on cars coming into the U.S. on April 2, which will, essentially, permanently shut down Canada’s automobile manufacturing industry,” Trump added.
The president is also preparing to roll out reciprocal tariffs on imports from Japan and the European Union early next month.
Canada strikes back with retaliatory tariffs
Last week, Trump imposed a 25% across-the-board tariff on Canada and Mexico after they failed to meet his demands to curb fentanyl trafficking and illegal immigration into the U.S.
In response, Canada introduced roughly 25% retaliatory tariffs on about C$30 billion ($20.7 billion) worth of American goods.
Ontario Premier Doug Ford vows to fight back
“I apologize to the American people that President Trump decided to launch an unprovoked attack on our country,” Ford said during a Tuesday morning MSNBC interview, vowing that both provincial and federal leaders would be relentless in fighting Washington’s new trade restrictions.
Democrats criticize Trump’s tariffs
New York Governor Kathy Hochul announced a review of the situation, slamming Trump’s decision to impose tariffs on Canada.
“These federal tariffs were poorly conceived from the start—crafted in secrecy with zero transparency and no clear economic rationale. They’ve only served to destabilize markets and create uncertainty for New York families and businesses,” Hochul said in a statement Monday.
Trump offers Canada an unusual alternative
Following the implementation of new tariffs, Trump softened some of his restrictions last week, announcing a one-month pause on USMCA-related imports, covering about 38% of Canadian exports to the U.S., according to a White House official.
This pause is in effect until April 2.
Additionally, Trump criticized Canada’s military spending, reiterating his long-standing grievance that U.S. allies rely too heavily on American defense spending.
“Canada pays very little for national security, relying on the United States for military protection,” Trump remarked.
“We are subsidizing Canada to the tune of more than $200 billion per year. WHY??? This cannot continue. The only logical solution is for Canada to become our cherished Fifty-First State.”
Trump further suggested that, if Canada were to join the U.S., tariffs would be eliminated, taxes would substantially decrease, and security would improve.
He even offered to let Ottawa keep “O Canada” as part of the deal.
Tariffs impact billions in trade
The tariffs implemented against Canada, Mexico, and China—including a 20% tariff on Chinese imports over fentanyl concerns—affect an estimated $1.5 trillion worth of annual imports.
Canada, China, and Mexico remain the United States’ top three trading partners.
