Trump escalates trade war with Canada by doubling steel and aluminum tariffs to 50%
Kumar Shivam | Mar 11, 2025, 23:50 IST
( Image credit : AP )
In retaliation for Ontario’s 25% surcharge on electricity exports to the U.S., President Trump has announced a dramatic increase in tariffs on Canadian steel and aluminum. This move deepens the trade conflict between the two nations, raising concerns about economic fallout and escalating political tensions.
Trump's Tariff Increase
Doubling Tariffs on Canadian Steel and Aluminum
President Trump announced a 25% increase in tariffs on Canadian steel and aluminum, bringing the total to 50%. This decision is a direct response to Ontario's imposition of a 25% surcharge on electricity exports to the U.S. Trump justified the tariffs on social media, calling it a necessary step due to Canada’s new energy-related trade measures.
Economic Reactions in the U.S.
Market Volatility and Growing Recession Fears
Following the tariff announcement, U.S. stock markets experienced sharp declines, with the Nasdaq seeing its worst day since 2022. Economic uncertainty surrounding the potential for a recession has intensified as Trump’s policies continue to cause volatility in the markets. Investors are grappling with concerns about the long-term impact of these trade tensions on the economy.
Canada's Defiant Stance
Ontario Premier’s Pushback Against U.S. Tariffs
In response to Trump’s tariff hike, Ontario Premier Doug Ford stated that Canada would not back down. Ford called on U.S. business leaders to challenge the president's actions and warned of further economic consequences if the situation worsens. He also suggested that Canada could cut off energy supplies to the U.S., a move that would escalate the conflict even further.
Global Trade Implications
Wider Consequences for International Relations
Trump’s tariff decision not only affects U.S.-Canada relations but could also have a ripple effect on global trade. As Canada is a significant supplier of steel and aluminum to the U.S., the new tariffs may disrupt manufacturing industries and supply chains. Additionally, the move raises concerns about potential retaliatory tariffs from other nations, deepening trade instability worldwide.
Doubling Tariffs on Canadian Steel and Aluminum
President Trump announced a 25% increase in tariffs on Canadian steel and aluminum, bringing the total to 50%. This decision is a direct response to Ontario's imposition of a 25% surcharge on electricity exports to the U.S. Trump justified the tariffs on social media, calling it a necessary step due to Canada’s new energy-related trade measures.
Economic Reactions in the U.S.
Market Volatility and Growing Recession Fears
Following the tariff announcement, U.S. stock markets experienced sharp declines, with the Nasdaq seeing its worst day since 2022. Economic uncertainty surrounding the potential for a recession has intensified as Trump’s policies continue to cause volatility in the markets. Investors are grappling with concerns about the long-term impact of these trade tensions on the economy.
Canada's Defiant Stance
Ontario Premier’s Pushback Against U.S. Tariffs
In response to Trump’s tariff hike, Ontario Premier Doug Ford stated that Canada would not back down. Ford called on U.S. business leaders to challenge the president's actions and warned of further economic consequences if the situation worsens. He also suggested that Canada could cut off energy supplies to the U.S., a move that would escalate the conflict even further.
Global Trade Implications
Wider Consequences for International Relations
Trump’s tariff decision not only affects U.S.-Canada relations but could also have a ripple effect on global trade. As Canada is a significant supplier of steel and aluminum to the U.S., the new tariffs may disrupt manufacturing industries and supply chains. Additionally, the move raises concerns about potential retaliatory tariffs from other nations, deepening trade instability worldwide.