Trump Doubles Tariffs on Canadian Steel and Aluminum in Response to Ontario’s Electricity Tariff

In a dramatic escalation of economic tensions between the United States and Canada, President Donald Trump announced Tuesday that he will be doubling tariffs on Canadian steel and aluminum imports, raising them from 25% to 50%. The move, set to take effect Wednesday, follows Ontario’s decision to impose a 25% tariff on electricity exported to the U.S.

Trump, taking to his Truth Social platform, framed the decision as a necessary response to what he called an “abusive threat” from Canada.

“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump wrote.

He also declared his intent to proclaim a “national emergency on electricity” in the affected states, enabling rapid government intervention to mitigate potential supply chain disruptions.

The tariff increase is just the latest in a series of aggressive trade measures the U.S. president has taken against Canada since beginning his second term. Trump warned that unless Ottawa rescinds longstanding tariffs on American dairy products and other imports, he will impose further restrictions on Canada’s vital auto industry.

“If other egregious, long-time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S., which will, essentially, permanently shut down the automobile manufacturing business in Canada,” Trump declared.

He also reignited past provocations about a closer political relationship between the two nations, suggesting that the only way to eliminate trade conflicts would be for Canada to become the United States’ “cherished Fifty-First State.”

Ontario Premier Doug Ford announced the 25% surcharge on electricity supplied to U.S. states including Michigan, Minnesota, and New York as a countermeasure to Trump’s repeated tariff hikes and rhetoric against Canada. The measure, which took effect Monday, affects approximately 1.5 million American consumers.

At a press conference, Ford made it clear that he was ready to escalate if necessary.

“I will not hesitate to increase this charge,” Ford said. “If the United States escalates, I will not hesitate to shut the electricity off completely. … Believe me when I say I do not want to do this. I feel terrible for the American people who didn’t start this trade war. It’s one person who is responsible—President Trump.”

Despite Ontario’s move, the New York Independent System Operator, which manages the state’s electrical grid, stated that it has sufficient generating capacity to reduce reliance on Canadian electricity if required.

Trump’s latest tariff hike sent financial markets into a downward spiral. The S&P 500 fell by 0.8%, while the Nasdaq declined by 0.4%. The Dow Jones Industrial Average dropped 400 points, shedding more than 1% of its value.

This ongoing economic standoff between the two neighbors is putting immense pressure on industries that rely on cross-border trade. Canada’s steel and aluminum sectors, which export billions of dollars’ worth of materials to the U.S. annually, are bracing for significant disruptions, while American automakers fear higher costs if Trump follows through on his automotive tariff threats.

The deepening trade conflict highlights the sharp deterioration in relations between the two countries, once considered one of the world’s closest allies. While Mexico has managed to maintain a more stable relationship with Trump, Canada has taken a more confrontational approach, imposing countermeasures and publicly challenging the U.S. administration.

Trump, however, remains defiant, calling Canada a “tariff abuser” and warning that the U.S. will no longer tolerate what he perceives as economic imbalances.

“The United States is not going to be subsidizing Canada any longer,” Trump posted late Monday. “We don’t need your Cars, we don’t need your Lumber, we don’t need your Energy, and very soon, you will find that out.”

As tensions continue to mount, business leaders and policymakers on both sides of the border are watching closely, knowing that further retaliatory actions could deepen economic instability.