President Donald Trump declared a national emergency on electricity in the United States and doubled the tariffs on aluminum and steel from Canada after retaliatory tariffs from America’s neighbor to the north.
The president, in a lengthy post on his Truth Social account on Tuesday, also threatened to ‘permanently shut down’ the Canadian auto sector.
The only thing to make his tariffs stop is for Canada to become the 51st state, he noted as he ramps up his trade war.
In response, the stock market dropped over 500 points.
The increase in tariffs, from 25% to 50%, will go into affect on Wednesday, he said.
‘Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,’ Trump declared.
‘I will shortly be declaring a National Emergency on Electricity within the threatened area,’ he added.
Ontario Premier Doug Ford put a 25% tariff on Canadian electricity to Michigan, New York and Minnesota on Monday in response to earlier tariffs from Trump.
Ford, a conservative politician who runs Canada‘s most populous province, says he’s ready to ‘shut the electricity off completely’ if America continues to ‘escalate.’
President Donald Trump ramps up trade war with Canada
Trump also warned more auto tariffs are coming on April 2nd. He wants Canada to drop its retaliatory tariffs on U.S. dairy and agricultural products.
‘If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada,’ he said.
He closed with an offer to drop all tariffs if Canada agrees to become the 51st state of the United States.
‘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,’ he wrote.
The markets have shown their unhappiness with Trump’s economic decisions.
On Monday, there were fears a recession would be sparked when the markets tanked, resulting in Nasdaq Composite’s biggest loss since 2022.
Trump’s ramp up of the trade war with Canada comes after Ottawa’s retaliation to U.S. tariffs imposed last week.
He’ll get a chance to defend his latest round of tariffs when he speaks to the Business Roundtable, a trade association of CEOs, on Tuesday evening.
He has argued his tariffs are a transition but also wouldn’t rule out a potential recession.
‘I hate to predict things like that,’ Trump said on Fox News Channel’s Sunday Morning Futures
‘There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. And there are always periods of — it takes a little time. It takes a little time. But I don’t — I think it should be great for us. I mean, I think it should be great.’
While Trump has said the tariffs are focused on stopping fentanyl trafficking into the United States, they have had a quick impact on the stock market and economy.
Continuing his combative rhetoric towards Canada since retaking office, Trump this week accused outgoing Prime Minister Justin Trudeau of using the drama surrounding their tariff war to try and ‘stay in power.’
Trudeau announced his resignation in January, but in an explosive call on Wednesday between the two leaders, Trump claimed he tore into his northern counterpart.
‘Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped,’ Trump wrote on Truth Social.
‘He said that it’s gotten better, but I said, ‘That’s not good enough.” he went on.
Ontario Premier Doug Ford followed through on a promise to put a 25% tariff on Canadian electricity to Michigan, New York and Minnesota on Monday
Trump is now declaring a national emergency on electricity
Incoming Canadian Prime Minister Mark Carney has vowed to take on Trump
On Sunday, Mark Carney was elected the new head of Canada’s Labor Party, putting him in line to be the next prime minister.
He vowed to take on Trump.
‘America is not Canada, and Canada never, ever, will be part of America in any way, shape or form,’ he said in his victory speech.
‘We didn’t ask for this fight, but Canadians are always ready when someone else drops the gloves.’
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