11-3-2025 (WASHINGTON) US President Donald Trump has announced sweeping new tariffs on Canadian metals imports, citing retaliatory measures by Ontario related to cross-border electricity supplies.
President Trump declared on Tuesday that he has directed his Commerce Secretary to impose an additional 25 per cent tariff on all steel and aluminium entering the United States from Canada. This increase, set to take effect Wednesday, will double the existing tariffs to a punitive 50 per cent.
The White House’s aggressive stance comes as newly-minted Liberal leader Mark Carney prepares to assume the role of Prime Minister. Following his commanding victory in Sunday’s leadership contest, Carney adopted a defiant posture, insisting Canada would maintain its own retaliatory measures until American officials “show us some respect” and demonstrate genuine commitment to “free and fair trade.”
At the heart of the dispute lies Ontario’s 25 per cent surcharge on electricity exports, affecting approximately 1.5 million American homes and businesses across three states. This provincial policy appears to have provoked Trump’s ire, prompting his characterisation of Canada as “ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD” in a forceful statement published on Truth Social.
Market reaction was swift and negative, with US equities tumbling immediately following the President’s social media pronouncement.
The metals sector may not be the only casualty in this burgeoning trade war. President Trump has threatened to “substantially raise tariffs on cars coming into the US from Canada” as early as 2nd April if Canadian officials refuse to withdraw their counter-measures.
Trump’s aggressive protectionist stance emerges against a backdrop of mounting economic uncertainty. Following Monday’s brutal stock market selloff—triggered by his earlier tariff threats—the President faces intensifying pressure to articulate a coherent economic growth strategy rather than policies that critics fear could trigger a recession.
Whilst attempting to reassure the public that his tariff regime would cause merely a temporary “transition” in the economy—theoretically compelling companies to relocate manufacturing operations to American soil—Trump notably declined to rule out a recession during a Sunday interview with Fox News, stating, “I hate to predict things like that.”
