U.S. President Donald Trump announced Tuesday that he is doubling tariffs on Canadian steel and aluminium, raising duties from 25% to 50%.
Writing on his social media platform Truth Social, Trump said the tariff hike will take effect Wednesday and called it a response to Ontario’s decision to raise electricity prices on power sold to U.S. 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,” Trump wrote. “Canada will pay a financial price for this so big that it will be read about in History Books for many years to come!”
The US President also accused Canada of being “one of the highest tariffing nations anywhere in the world” and condemned Ontario’s electricity pricing as a “bargaining chip and threat.”
This was reported by Euronews.
Recession Fears and Stock Market Woes
The announcement came just one day after the S&P 500 plunged 2.7%, with further losses recorded Tuesday, prompting renewed fears of a recession. Financial analysts have warned that the trade escalation could damage both economies.
Goldman Sachs cut its U.S. growth forecast from 2.2% to 1.7%, while raising the probability of a recession to 20%, citing the administration’s policy volatility.
“If we go into a recession, it’s self-made by one person. It’s called President Trump’s recession,” said Ontario Premier Doug Ford on MSNBC. “We should be booming — both countries.”
Ford had earlier responded to Trump’s earlier tariffs by raising electricity prices on U.S.-bound exports. Trump retaliated with his latest tariff hike and pledged to declare a national emergency in Minnesota, New York, and Michigan, which rely on Ontario power.
Calls for Canada to Become the 51st State
In a separate post, Trump again floated the idea of Canada becoming the “51st state”, claiming it would solve all trade disputes.
“This would make all tariffs, and everything else, totally disappear,” he said.
This is not the first time Trump has made the controversial suggestion, which Canadian officials have repeatedly dismissed.
Canada isn’t the only target. Trump has also imposed 25% tariffs on Mexico, citing drug trafficking and illegal immigration. However, the White House has paused those duties on compliant imports under the USMCA trade deal for at least one month.
Asked whether Mexico might face the same 50% tariff hike, Mexican President Claudia Sheinbaum replied:
“No, we are respectful.”
While markets have reacted nervously, Trump tried to reassure investors, calling the tariff regime a “transition” period to greater economic independence.
“What we’re doing is very big,” he said in a Fox News interview. “We’re bringing wealth back to America… It takes a little time. But I think it should be great for us.”
