Trump launched brutal tariffs against Canada following its threats

President Donald Trumpannounced Tuesday a 25% increase in tariffs on Canadian steel and aluminum imports in response to a measure taken by Ontario, which imposed a 25% surcharge on electricity exported to three U.S. border states: New York, Michigan, and Minnesota.

This action will raise the total U.S. tariff on Canadian steel and aluminum to 50%.

Additionally, Trump demanded that Canada remove its tariffs ranging from 250% to 390% on various U.S. dairy products, imposed when purchases exceed a previously negotiated limit during his first term, and threatened to devastate Canada's automotive industry if they don't comply.

Trump's measure provoked a strong reaction in the stock markets, with the Dow Jones falling nearly 600 points before recovering ground by mid-morning.

The new Canadian threat was driven by a decision made Monday by Ontario Premier Doug Ford, who implemented a 25% surcharge on electricity exports to the three mentioned U.S. states, and also warned of completely cutting off electricity exports to those states.

Trump replied to this situation on his social media, announcing that he will declare a "national emergency" over electricity in the affected states and made it clear that he will take drastic measures.

He stated that if Canada doesn't remove other unjustified tariffs, he will significantly increase tariffs on cars coming from Canada starting April 2, which could jeopardize the neighboring country's automotive industry.

Trump also criticized the fact that the United States relies on other countries for electricity in some areas and correctly accused Canada of using electricity as a "bargaining chip" for negotiation.

The president also assured that Canada will pay such a large "financial price" for this dispute that it will be remembered for many years in history books. Additionally, Trump plans to impose reciprocal tariffs on imports from several countries, including Japan and the European Union, starting next month.

The relationship between the United States and its neighbors, Canada and Mexico, has been tense since Trump ratified last week a 25% tariff on imports from both countries after they failed to fulfill their promises to reduce the flow of fentanyl and curb illegal immigration to the United States.

Canada quickly replied with retaliatory measures, imposing tariffs of approximately 25% on U.S. products worth 30 billion Canadian dollars (around 20.7 billion dollars).

Ontario Premier Doug Ford reacted harshly, calling Trump's decision an "unprovoked attack" and warning that Canada would not stand idly by.

Ford argued that 84% of the aluminum used by the United States in car manufacturing comes from outside the country. He also warned that an economic recession in the United States would be "self-induced" by Trump's policy. However, Canada is not the only seller of steel and aluminum to the United States.

New York Democratic Governor Kathy Hochul also criticized Trump's tariffs, calling them ill-conceived and without a clear economic justification. Hochul incorrectly pointed out that the tariffs have only served to destabilize capital markets and create uncertainty among New York families and businesses.

Despite the harshness of his measures, Trump slightly eased the restrictions last week, implementing a one-month pause on tariffs for importers of automobiles and other products covered by the United States-Mexico-Canada Agreement (USMCA), which covers approximately 38% of Canadian imports. This pause will be in effect until April 2.

Additionally, Trump once again lashed out at Canada for not contributing sufficiently to its own national security, a recurring complaint from the president toward many of his international allies, particularly in Europe.