President Donald Trump has escalated trade tensions with Canada, declaring a national emergency on electricity and doubling tariffs on aluminum and steel imports from the country. The move comes in response to retaliatory tariffs imposed by Ontario, sparking fears of a potential recession.
In a series of lengthy posts on his Truth Social account on Tuesday, Trump also threatened to “permanently shut down” Canada’s auto sector unless Ottawa lifts its tariffs on U.S. dairy and agricultural products. He even suggested that the only way to end the dispute would be for Canada to become the United States’ 51st state.
Following Trump’s announcement, the stock market reacted negatively, dropping over 500 points as investors grew concerned about economic instability. The new tariff rates—rising from 25% to 50%—will take effect on Wednesday.
Retaliation Over Electricity Tariffs
Trump’s decision to double tariffs follows Ontario Premier Doug Ford’s imposition of a 25% tariff on Canadian electricity exports to Michigan, New York, and Minnesota. Ford, a conservative leader governing Canada’s most populous province, has warned that if the U.S. escalates further, Ontario is prepared to cut off electricity exports completely.
In his statement, Trump denounced Canada’s electricity tariff as an unfair tactic.
“Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why? And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!” he wrote.
Auto Industry at Risk
Trump has also turned his attention to Canada’s auto industry, warning that additional tariffs on Canadian cars could effectively cripple the sector.
“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 stated.
The president closed his remarks with an unexpected proposal: the elimination of all tariffs—on the condition that Canada agrees to become part 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.
Market Fears and Border Restrictions
Trump’s aggressive trade stance has already rattled financial markets. On Monday, the Nasdaq Composite suffered its biggest loss since 2022 as investors worried about the long-term effects of the ongoing trade war.
In addition to economic measures, the administration is also tightening restrictions on Canadian visitors. Beginning April 11, Canadians staying in the U.S. for 30 days or more will be required to register with the government and undergo fingerprinting, according to an upcoming federal rule reported by ABC News.
Tensions with Canada’s Leadership
Trump’s rhetoric has also intensified against outgoing Canadian Prime Minister Justin Trudeau, whom he accused of using the tariff dispute as a distraction. In a phone call on Wednesday, Trump reportedly confronted Trudeau over fentanyl trafficking, claiming Canada was not doing enough to stop the flow of drugs into the U.S.
“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.
Meanwhile, Canada’s political landscape is shifting, with Mark Carney recently elected as the new leader of the Labor Party, positioning him as Trudeau’s likely successor. Carney responded defiantly to Trump’s threats, vowing to stand firm against U.S. pressure.
“America is not Canada, and Canada never, ever, will be part of America in any way, shape, or form,” Carney declared in his victory speech. “We didn’t ask for this fight, but Canadians are always ready when someone else drops the gloves.”
Looking Ahead
As Trump prepares to defend his economic strategy before the Business Roundtable, a trade association of corporate CEOs, questions remain about the long-term impact of his tariffs. While the president insists they are a necessary tool to bring “wealth back to America,” concerns over a potential recession and strained U.S.-Canada relations continue to grow.
With tensions mounting, all eyes will be on how Canada and the international business community respond to Trump’s latest moves in this escalating trade war.
Source: https://www.dailymail.co.uk/news/article-14486299/trump-national-war-electricity-trade-canada.html
