President Donald Trumpon Tuesday doubled his planned tariffs on all imports of steel and aluminum products from Canada to 50%, in response to the province of Ontario's decision to place a 25% tariff on its electricity exports to the U.S.
Trump said in a post on his Truth Social media platform that he has instructed his commerce secretary to add an additional 25% tariff on the metals products that will go into effect on Wednesday morning.
"Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous. I will shortly be declaring a National Emergency on Electricity within the threatened area," Trump wrote.
He also threatened to "substantially increase" tariffs on cars coming into the U.S. on April 2 "if other egregious, long time Tariffs are not likewise dropped by Canada."
In a post on X sent after Trump's latest threat, Ontario Premier Doug Ford - whose government is hiking the price on the electricity it generates for portions of New York state, Michigan and Minnesota - said he would not back down until all of Trump's tariffs on Canadian imports to the U.S. were "gone for good."
The latest broadside by Trump on tariffs delivered another painful jolt to financial markets, with the benchmark S&P 500 index (.SPX) sliding almost 1.0% as investors worry the import taxes will hurt U.S. growth and rekindle inflation. The Toronto Stock Exchange's S&P/TSX Composite index (.GSPTSE) was down about 0.5% and the Canadian dollar fell against the greenback.
Broader 25% levies on all steel and aluminum imported to the U.S. from anywhere are due to take effect early on Wednesday.
Those tariffs will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. duty free under carve-outs. Trump has vowed that the tariffs will be applied "without exceptions or exemptions" in a move he hopes will aid the struggling U.S. industries.
Trump's hyper-focus on tariffs since taking office in January has rattled investor, consumer and business confidence in ways that economists increasingly worry could cause a recession. A small business survey on Tuesday showed sentiment weakening for a third straight month, fully eroding a confidence boost following Trump's November 5 election victory.
(This story has been refiled to correct hyperlink in paragraph 1)
