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President Donald Trump has doubled tariffs on Canadian goods and resources, raising duties on steel and aluminum imports from 25% to 50%, effective immediately.
The announcement, made late Tuesday via Truth Social, marks a sharp escalation in trade tensions between the United States and its northern neighbor. Trump cited Ontario’s recent 25% surcharge on electricity exports to the U.S. as the catalyst, accusing Canada of long-standing trade abuses and threatening further levies if retaliatory measures persist.
The move targets Canada’s vital steel and aluminum industries, key components of its $500 billion annual trade with the U.S. Trump also hinted at broader tariffs, including a potential 250% tax on Canadian dairy and lumber, arguing that Canada’s existing tariffs unfairly burden American farmers. “Canada’s been ripping us off for years. It’s time we fight back,” he declared, reiterating his campaign promise to prioritize American economic interests.
Canadian leaders swiftly condemned the decision. Ontario Premier Doug Ford, after initially imposing the electricity surcharge in response to earlier U.S. tariff threats, backed down following talks with U.S. Commerce Secretary Howard Lutnick. However, incoming Prime Minister Mark Carney vowed retaliatory tariffs on $155 billion of U.S. goods, including liquor, appliances, and vehicles, if Trump’s policies persist. “This is an attack on Canadian workers and families,” Carney said.
Economists warn that the doubled tariffs could disrupt North America’s integrated supply chains, raising prices for U.S. consumers on everything from cars to construction materials. Stock markets reacted with unease, with the S&P 500 dropping 1% as investors braced for a potential trade war.
While Trump frames the tariffs as a negotiating tool to address fentanyl trafficking and border security, critics argue they risk economic fallout for both nations, leaving the future of U.S.-Canada relations in a precarious state.