In a bold move, former US President Donald Trump has announced a significant increase in tariffs on steel and aluminum imports from Canada, hiking them up to 50%. This decision comes as a direct response to the Canadian province of Ontario’s recent move to raise the cost of electricity exported to the United States by 25%. Trump’s announcement has sent shockwaves through the global market, with many experts warning of the potential consequences for the US economy.
The increased tariffs, which were announced on Tuesday, March 11, 2025, are a clear escalation of the ongoing trade tensions between the US and Canada. Trump, known for his tough stance on trade, has been vocal about his dissatisfaction with Canada’s trade practices, and this move is seen as a strategic attempt to level the playing field. In a statement posted on Truth Social, Trump revealed that he has instructed the US Treasury Secretary to impose the increased tariffs, effective immediately.
“I have ordered my Secretary of the Treasury to increase the tariff wall on all Canadian steel and aluminum imports into the United States from 25% to 50%, making Canada one of the highest-tariffed countries in the world,” Trump stated. The former President also declared a national energy emergency in the states that import energy from Ontario, including New York, Minnesota, and Michigan, and threatened to impose additional tariffs on Canadian automobiles imported into the US, starting from April 2.
The move has been met with widespread criticism, with many experts warning that it could have far-reaching consequences for the US economy. The CEO of Alcoa, one of the largest aluminum producers in the US, has cautioned that even a tariff on aluminum alone could result in the loss of up to 100,000 jobs in the US. The US relies heavily on Canadian steel and aluminum, with imports valued at $11.4 billion and $7.6 billion, respectively, in 2022. Canadian aluminum accounts for a substantial 41% of all aluminum imports into the US, while steel and iron imports from Canada make up nearly 25% of the total.
The announcement has also had an immediate impact on the US stock market, with stocks plummeting in response to the news. As the situation continues to unfold, it remains to be seen how the trade tensions between the US and Canada will play out, and what the long-term effects of these tariffs will be on the global economy. According to a report by CNN, the tariffs could have significant implications for the US economy, and the situation is being closely monitored by experts and investors alike.