The ongoing trade dispute between the United States and Canada shows no signs of easing, as former President Donald Trump unveils his latest countermeasures.
Trump’s new tariffs come in response to increased electricity prices imposed by the provincial government of Ontario on power exported to the U.S. Having previously warned of retaliation, Trump is now making good on his promise.
Trump Announces Tariff Hikes on Canadian Imports
Taking to his social media platform, Truth Social, Trump outlined his plan to strike back against Canada.
He wrote: “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 also issued a demand for Canada to lower its tariffs on American agricultural products or face further consequences.
“This will go into effect TOMORROW MORNING, March 12th,” he continued. “Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous.”
Additionally, Trump announced that he would soon declare a National Emergency on Electricity in affected regions, allowing the U.S. government to take swift action against what he described as “this abusive threat from Canada.”
Threats of More Tariffs and the Future of Canadian Auto Manufacturing
Trump made it clear that these tariffs were just the beginning, warning that more aggressive trade measures could follow in April.
His post stated: “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.”
He argued that these vehicles could just as easily be produced within the United States, emphasizing that “Canada pays very little for National Security, relying on the United States for military protection.”
A Controversial Proposal: Canada as the 51st State
In a move that has already stirred controversy, Trump once again suggested that Canada should become part of the U.S. to avoid future trade disputes.
“The only thing that makes sense is for Canada to become our cherished Fifty-First State. This would make all Tariffs, and everything else, totally disappear,” he wrote.
He further claimed that such a move would lead to “substantially reduced” taxes for Canadians, increased military security, and the elimination of border issues.
“The greatest and most powerful nation in the World will be bigger, better, and stronger than ever,” Trump concluded.
His remarks have sparked strong reactions, with many Canadians rejecting the idea outright, while others brace for further economic consequences as tensions between the two nations continue to escalate.