New Tariff from Trump to Canada: Decision for 50% Tax on Steel and Aluminum

President Donald Trump announced that a 25% additional import tariff will be added to all steel and aluminum products coming from Canada to the United States. This extra tax will raise the total rate to 50%. Trump stated, “We subsidize Canada with over $200 billion every year. Why? This cannot continue like this. The only logical thing is for Canada to be our 51st state.” In response to the announcement that Canada, specifically the Ontario province, will impose a 25% import tariff on electricity sold to the US, Trump publicly expressed his criticism on Truth Social. Trump strongly reacted to Canada’s decision and declared that they will increase the import tariff by an additional 25% on all steel and aluminum products coming from Canada, bringing the total rate to 50%. Trump also emphasized that Canada must immediately eliminate the 250% to 390% farmer import tariff imposed on various American dairy products. Pointing out the difficulties caused by Ontario’s import tax on electricity sold to the US, Trump announced, “I will declare a National Emergency on electricity in that region shortly in order to swiftly address what needs to be done to mitigate this malicious threat coming from Canada.” Trump underscored, “We subsidize Canada with over $200 billion every year. Why? This cannot continue like this. The only logical thing is for Canada to be our 51st state.” He suggested that Canada, upon joining the US, would be freed from all import tariffs, be more secure in military terms, and no longer face border issues. Trump commented, “The world’s largest and most powerful nation will be greater and more robust than ever before, with Canada being a significant part of it.” Trump insisted that Canada should lift the other import tariffs it imposes on the US, warning, “Otherwise, on April 2, I will significantly increase the import tariffs on automobiles coming to the US and permanently halt automobile production in Canada.”
US-CANADA TRADE TENSIONS
The additional 25% import tariff on products from Canada and Mexico imposed by the US started on March 4. Later, Trump announced that they would not apply import tariffs until April 2 for products covered under the “US-Mexico-Canada Agreement (USMCA).” Trump had previously informed that additional tariffs on steel and aluminum imports to the country would take effect on March 12. Ontario’s Premier Doug Ford stated yesterday that they would impose an additional 25% charge on electricity supplied to US states in response to the US government’s import tariffs. Ford emphasized that they would not hesitate to increase this rate if necessary, stating, “If the US escalates this, I will not hesitate to cut off electricity completely. I feel very sorry for the American people because they did not start this trade war. There is only one person responsible, and that is President Trump.”