Topline
President Donald Trump said he would impose a 50% tariff on all Canadian steel and aluminum products Wednesday, doubling the planned global levy for the products and deepening the trade war with the U.S.’s northern neighbor.
President Donald Trump walks on the South Lawn of the White House after stepping off Marine One in … [+] Washington, DC on March 9, 2025. (Photo by OLIVER CONTRERAS/AFP via Getty Images)
Key Facts
He also said he would declare a “National Emergency on Electricity within the threatened area,” which primarily impacts Minnesota, Michigan and New York, writing that it “will allow the U.S. to quickly do what has to be done to alleviate this abusive threat from Canada.”
Trump threatened to “substantially increase” tariffs on cars from Canada on April 2—when a wave of global reciprocal tariffs on imports to the U.S. is set to take effect—if Canada does not eliminate “other egregious, longtime tariffs,” warning it would “essentially, permanently shut down the automobile manufacturing business in Canada.”
Trump on Tuesday also reiterated his call for Canada to remove tariffs on imports of American dairy products—which range from 241% for fluid milk to 299% for butter, according to Politifact—after threatening Friday to target Canadian lumber and dairy products with “the exact same tariff unless they drop it.”
Trump alleged the U.S. is “subsidizing Canada to the tune of more than 200 Billion Dollars a year,” reupping his call for Canada to become the 51st state—an idea Canadian politicians have universally rejected.
Tangent
Ontario Premier Doug Ford imposed the 25% electricity surcharge Monday and said it would stay in place until Trump retracts new tariffs and his threats of additional tariffs. Ontario provides electricity to about 1.5 million homes and businesses in the three states, Ford said. Ontario also pulled U.S. liquor from its shelves, cancelled a $100 million contract with Elon Musk’s Starlink and banned U.S. companies from obtaining government procurement contracts.
What To Watch For
Trump announced on Feb. 10 a 25% tariff on all steel and aluminum imports from U.S. trading partners that’s set to take effect Wednesday.
Key Background
Trump on Thursday partially delayed a 25% tariff on goods for Mexico and Canada imposed March 4 until April 2, when a wave of global reciprocal tariffs are set to take effect. The delay applies to goods covered under the United States-Mexico-Canada Agreement. Trump initially said he would impose the tariffs because the countries have not done enough to stave the flow of fentanyl, though he’s since raised numerous other issues with Canada as the trade war between the two countries has deepened. Canada announced a 25% tariff on $20.7 billion USD worth of U.S. goods that officials said would stay in place despite Trump’s decision to delay the taxes for a month, though Canada cancelled a second round of retaliatory tariffs that would have taken effect three weeks later. Trump’s tariffs, coupled with his refusal to rule out the possibility of a recession in a Fox News interview aired Sunday, triggered a stock market selloff Monday, when the S&P and Nasdaq closed at their lowest respective levels since mid September, and the Dow ended at its lowest price since September.
Further Reading
Trump Threatens New Tariffs On Canada As Soon As Today—After Halting 25% Levies (Forbes)
Trump Bails On Most Mexico And Canada Tariffs For 1 Month (Forbes)
