US President Donald Trump announced significant new tariffs on Canadian steel and aluminum on Tuesday, while threatening to “shut down” Canada’s auto industry. He suggested that the best way to end the trade war would be for Canada to become part of the United States. Trump’s unexpected threats came just hours before a midnight deadline for ramping up his global trade offensive. On his Truth Social platform, Trump announced that he would double the planned 25-percent tariffs on steel and aluminum to 50 percent for imports from Canada. A 25-percent levy is still set to take effect on Wednesday for other US trading partners, including Brazil, Mexico, and the United Arab Emirates. The upcoming tariffs, which currently allow for no exceptions, threaten to impact a wide range of products, from electronics to vehicles and construction equipment, leaving manufacturers scrambling to find cost-effective domestic suppliers. Canada, historically one of the United States’ closest allies and top trading partners, is now facing the most aggressive action. Ottawa is locked in a bitter war of words with Trump, facing constant threats over its sovereignty. Canada’s incoming prime minister, Mark Carney, struck a defiant note on Sunday, vowing to stand up for “the Canadian way of life” and saying Canadians are “always ready” for a fight if needed. Reacting to Trump’s announcement on MSNBC, Ontario Premier Doug Ford said the US president made “an unprovoked attack on our country, on families, on jobs,” promising an appropriate response. Canada supplies half of US aluminum imports and 20 percent of US steel imports, noted industry consultant EY-Parthenon. Trump stated that his new tariffs were in response to Ontario’s imposition of a 25-percent surcharge on electricity exports to three US states. He announced plans to declare an electricity national emergency in the affected area. Trump also warned that if the “egregious” Canadian tariffs are not dropped, he would step up tariffs on cars from April 2, which he claimed would “essentially, permanently shut down the automobile manufacturing business in Canada.” In the same social media post, Trump suggested that the “only thing that makes sense” is for Canada to join the United States as a 51st state. “This would make all tariffs, and everything else, totally disappear. Canadians’ taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem,” Trump said. Former Treasury Secretary Larry Summers criticized Trump’s tariff threats on Canada, calling them “a self-inflicted wound to the US economy that we cannot afford, at a moment when recession risks are rising.” However, some companies saw an opportunity. Drew Greenblatt, owner of Baltimore-based metal product manufacturer Marlin Steel, said incoming levies on imported steel have already boosted his new orders. “We only use American steel, so we’re thrilled with the tariffs,” he told AFP, adding that these helped him gain an edge over a competitor using Chinese metal imports. Producers who rely on foreign sources of steel have warned that higher import costs will ripple through the US economy. A major US maker of steel products cautioned that American steel prices would surge to match the elevated costs of foreign goods, leading to higher prices for items like nails and increased costs for industries like homebuilding. These costs could ultimately be passed on to consumers, making homes even less affordable.
