Trump Imposes 50% Tariff on Canadian Steel and Aluminum After Ontario Electricity Surcharge

President Donald Trump has announced a 25% tariff on Canadian steel and aluminum. The new tariff raises the total import tax to 50%. The move comes after Ontario imposed a 25% surcharge on electricity exports to New York, Michigan, and Minnesota.

“Trump called Ontario’s electricity tariff an abusive threat. He said the United States would declare a National Emergency on Electricity in the affected states. He said this would allow the US to act quickly to protect its energy supply.”

The announcement caused a sharp drop in the stock market. The Dow Jones fell nearly 600 points before stabilizing. Investors reacted to fears of rising trade tensions between the US and Canada. Trump also warned Canada that more tariffs could come soon. He said Canadian auto exports would face a tariff increase on April 2 if Canada does not drop other trade barriers.

Trump also demanded that Canada remove its 250% to 390% tariff on American dairy products. He said Canada must stop using electricity as a bargaining chip. He warned that the US would make Canada pay a financial price.

The new tariffs have drawn strong criticism from Canadian officials. Prime Minister Justin Trudeau called the move reckless and harmful to both economies. He said Canada would take action to defend its industries. Canadian trade groups also warned that the tariffs would hurt businesses and drive up costs for consumers.

Trump has also hinted at more global tariffs. He said new tariffs could be placed on imports from Japan and the European Union. The White House confirmed that trade actions could be announced in the coming weeks. With tensions rising, economists warn that both the US and Canada could face economic consequences if the dispute escalates further.

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