President Donald Trump announced Tuesday that he has directed his administration to increase tariffs on Canadian steel and aluminium imports by an additional 25%, raising the total duty to 50%.
Trump stated that the tariff hike was in response to Ontario Premier Doug Ford’s decision to impose a 25% tax on electricity exports to the U.S.—a move that itself was a reaction to Trump’s initial 25% tariffs on Canadian imports.
The new tariffs will take effect Wednesday morning, according to a Truth Social post in which Trump also reiterated his call for Canada to become the “Fifty-First State” of the U.S.
“Due to Ontario, Canada, placing a 25% tariff on ‘Electricity’ entering the United States, I have instructed my Secretary of Commerce to impose an ADDITIONAL 25% tariff, bringing it to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS IN THE WORLD,” Trump wrote on Truth Social Tuesday morning.
“This will take effect TOMORROW MORNING, March 12th,” he added.
Following the announcement, the Dow Jones Industrial Average saw extended losses, dropping over 500 points, while the S&P 500 declined 0.8% and the Nasdaq Composite fell 0.4%.
