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President Donald Trump has said it will impose a 50% tariff on steel and aluminum imports from Canada, escalating the battle with one of the largest US trading partners.
“I have directed the Secretary of Commerce to add an additional 25% tariff to 50% on all steel and aluminum coming to the US from Canada, one of the highest tariffs in the world,” Trump wrote on his Truth Social Platform on Tuesday.
He added that the collection will take effect on Wednesday.
US stocks fell after the announcement, with the S&P 500 index down 0.8%. However, US aluminum prices have skyrocketed.
The announcement is the latest in a string of Tatt salvos between the US and Canada, as Trump’s aggressive tariff threats and economic nationalism could break North American trade.
Shortly after the inauguration, the US president said he would impose a 25% tariff on Canada and Mexico, but last week he gave a month to a product that meets the 2020 free trade trading rules.
Canadian officials had already retaliated against the short-lived imposition of wiped tariffs on all Trump’s goods and services by applying a 25% tax on US imports worth $21 billion.
The US products attacked by Canada include orange juice, peanut butter, wine, apparel, motorcycles and cosmetics. Last week, Canadian officials said the tax would remain intact until Trump lifts all duties on his neighbor’s goods.
The high tariff charge on the 25% surcharge imposed by Ontario, Canada on Monday for electricity exports to the United States, has raised electricity prices for around 1.5 million Americans in New York, Michigan and Minnesota, according to Trump on Tuesday.
Trump described Ontario’s surcharge as an “abuse threat” to the United States and said he would declare a “national emergency over electricity” that would be affected by the US.
In his second social media post Tuesday morning, Trump said, “Can you imagine Canada being covered low enough to use electricity?
Aluminum and steel duties are part of another set of obligations placed on producers around the world, due to take effect Wednesday.
White House officials say the 25% global tariff on metal imports is intended to protect the domestic U.S. industry.
Ontario Prime Minister Doug Ford has been fighting publicly and violently with Trump for several days recently, saying the US market is “falling over because of President Trump’s tariffs.”
“President Trump’s tariffs are causing confusion,” Ford posted on X. He needs to come to the table to drop the tariffs and negotiate a fair deal. We won’t retreat until he does. ”
Despite a wider stock index slide, U.S. steel producers’ shares rose on Tuesday. US steel increased by 2.6%, Nucor rose by 2.2%, and steel dynamics increased by 1.8%.
A closely tracked measure of differences in aluminium prices in the US and London, known as the Midwest Premium, rose sharply on Tuesday, highlighting the rising costs facing American industrial groups.
Futures tracking premiums following the prices of metals delivered to plants in the Midwest have risen by 18%, according to Factset data.
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Trump said if Canada does not drop “long” tariffs, he would “significantly increase” taxes on cars coming to the US.
Indicating that US Northern neighbors can no longer guarantee Washington will protect it militarily, Trump said, “It makes sense that Canada will become our precious 50 first states. This will incur all the tariffs and all else will disappear for good.”
Since becoming president in January, Canada has strongly rejected such proposals by Trump.
Additional Reports by Ilya Gridneff
