U.S. President Donald Trump announced a 50% increase in tariffs on steel and aluminum from Canada. This decision is in response to the recent imposition of a 25% surcharge on electricity exported from the province of Ontario to certain U.S. states.
Through his social network Truth Social, Trump explained that he instructed his Secretary of Commerce to apply an additional 25% tariff on these metals, thus doubling the previous levy. The measure will take effect immediately and, according to the president, seeks to counteract what he considers unfair tariffs imposed by Canada.
Ontario Premier Doug Ford had previously announced the increase in the cost of electricity supplied to border regions such as New York, Michigan and Minnesota, which will affect around 1.5 million U.S. homes and businesses. Ford justified the decision by claiming that Trump’s tariff policies have been detrimental to the Canadian economy. He further warned that, if Washington insists on increasing its tariffs, Ontario could retaliate even more severely, including restricting electricity supplies to the U.S. altogether.
President Trump also mentioned the possibility of declaring a “National Emergency on Electricity,” which would allow additional measures to be taken to counter Canada’s actions. In addition, he threatened to impose new tariffs on automobiles imported from the neighboring country if tariffs he considers excessive are not eliminated.
Trade tensions between the two countries have generated uncertainty in the financial markets, causing a drop in the main Wall Street indexes and weakening some key economic indicators in the United States. Experts warn that the prolongation of this dispute could impact employment growth and business confidence, in addition to affecting the stability of the dollar.
This escalation in trade tensions highlights the fragile relationship between the United States and its northern neighbor, evidencing the direct impact that tariff policies can have on the economy of both countries. While negotiations remain at a critical p
