The tariff war between the U.S. and Canada grew Tuesday when President Donald Trump revealed plans to increase steel and aluminum tariffs. This is in response to an electricity fee the Ontario government would imposed on the U.S.
The Trump administration plans to impose 25% tariffs on steel and aluminum on Wednesday, per The Hill.
Trump then announced he told Commerce Secretary Howard Lutnick to up the tariffs on Canadian steel and aluminum imports from 25% to 50%.
More tariffs may be coming as Trump wants to impose reciprocal tariffs starting April 2 on all countries with duties on U.S. products.
Those include on cars, which Trump said would “essentially, permanently shut down the automobile manufacturing business in Canada.”
On Monday, the government of Ontario said it would apply a 25% surcharge on electricity exports to three Michigan, Minnesota and New York. This would affect electricity sales for 1.5 million homes and businesses across those three states, which border Ontario.
It could cost upwards of $400,000 per day.
Trump posted on social media he would declare a national emergency if this were to happen. He also wrote of Canada becoming the 51st state, much to the chagrin of Canadian politicians.
“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,” Trump wrote. “Canadians taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem, and the greatest and most powerful nation in the World will be bigger, better and stronger than ever — And Canada will be a big part of that.”
“The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World — And your brilliant anthem, ‘O Canada,’ will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!” he added.
