Posted on 12 Mar 2025
US President Donald Trump says he is doubling the tariff on imports of steel and aluminium from Canada to 50%, Kallanish reports.
Doug Ford, the premier of the Canadian province of Ontario, had reacted to Trump’s initial 25% tariff on Canadian steel and aluminium by adding a 25% surcharge on the province's electricity sales to customers in New York, Michigan and Minnesota. On Tuesday, Trump used Truth Social to announce his next escalation.
“Based on Ontario, Canada, placing a 25% tariff on "Electricity" coming into the United States, I have instructed my Secretary of Commerce to add an additional 25% tariff, to 50%, on all steel and aluminum coming into the United States from Canada, one of the highest tariffing nations anywhere in the world," Trump writes.
Trump’s social media posts have promised exorbitant retaliatory measures against the North American neighbour.
“[Canada] will pay a financial price for this so big that it will be read about in history books for many years to come!" promises Trump.
Following discussions involving members of the United States-Mexico-Canada Agreement (USMCA) last week, Trump paused 25% tariffs on both countries through 2 April (see Kallanish passim). Trump said the US would unveil its more comprehensive list of global reciprocal tariffs on that date.
Since Trump’s tariff policies have been implemented and withdrawn, multiple industries, including automotive and equipment builders, have tried to appeal to the president for relief against the cost-prohibitive actions thrust upon them. Whilst many steel producers support tariffs and even encourage Trump to disclude any exemptions (see Kallanish 10 March), other steel-contingent and adjacent businesses are experiencing layoffs and shutdowns, stoking fears of a US economic recession.
China and Canada have each filed claims against the US to the World Trade Organization as both allege that Trump's tariffs violate the General Agreement on Tariffs and Trade (see Kallanish 5 March).
Source:Kallanish
