Trump Doubles Tariffs on Canadian Steel and Aluminium Amid Trade Dispute

U.S. President Donald Trump has escalated trade tensions with Canada by announcing a doubling of tariffs on steel and aluminum imports, raising the levies to 50%. The move, he says, is in direct retaliation to Ontario’s 25% tariff on electricity exports to northern U.S. states.

“If these tariffs, including those on agricultural products, are not dropped, I will impose further taxes on the automobile industry—essentially shutting down Canadian car manufacturing,” Trump warned.

Canada Pushes Back

Ontario Premier Doug Ford responded forcefully, saying, “Until the threat of tariffs is gone for good, we won’t back down.” In a post on social media, Ford accused Trump of launching an “unprovoked trade and tariff war” with Canada, one of America’s closest allies.

Canadian Prime Minister-designate Mark Carney dismissed Trump’s comments about Canada potentially becoming the 51st U.S. state, asserting that “Canada will never be part of America in any way, shape, or form.”

Economic and Market Impact

Trump’s announcement comes at a precarious time for financial markets. The S&P 500 fell further on Tuesday, following its biggest single-day drop since December.

Investor anxiety has been fueled by Trump’s recent statements, in which he hinted at a “transition” in the U.S. economy, raising fears of a potential recession.

Economists warn that escalating trade tariffs could increase inflation in both the U.S. and Canada, leading to higher prices for consumers and disruptions in key industries.

With trade tensions escalating, all eyes are now on whether Canada and the U.S. will find common ground—or if this dispute will push both economies into further instability.