March 12, 2025 – In a bold move that has intensified trade tensions with Canada, U.S. President Donald Trump announced today a significant tariff hike, doubling duties on Canadian steel and aluminum imports from 25% to 50%, effective immediately. The decision, revealed via Trump’s Truth Social platform, comes as a direct retaliation to Ontario’s recent imposition of a 25% surcharge on electricity exports to the United States, a measure enacted by Premier Doug Ford to counter earlier U.S. tariff threats.

Trump justified the escalation by accusing Canada of being “one of the highest tariffing nations anywhere in the world” and pointed to Ontario’s electricity surcharge as an “egregious” act against American interests. The new tariffs, set to take effect at midnight, are expected to disrupt the $1.5 trillion annual trade relationship between the U.S. and Canada, its largest trading partner. Canadian steel and aluminum account for a substantial portion of U.S. imports—41% of aluminum and nearly a quarter of steel last year—raising concerns about immediate economic fallout.

The announcement triggered a sharp reaction in financial markets, with the S&P 500 dropping nearly 1.5% as recession fears mounted. Economists warn that the tariffs could increase costs for U.S. manufacturers, threaten jobs, and exacerbate inflation, while Canadian officials, including Conservative Leader Pierre Poilievre, condemned the move as a betrayal of the longstanding U.S.-Canada alliance. Poilievre called for matching retaliatory tariffs on U.S. steel and aluminum imports.

This escalation follows Trump’s earlier pledge of 25% tariffs on Canadian metals, which he doubled in response to Ontario’s countermeasure. The White House insists the policy will bolster domestic production and national security, but critics argue it risks backfiring, citing a net loss of American jobs during similar tariffs in Trump’s first term. As the trade war deepens, Trump hinted at further measures, including potential tariffs on Canadian autos by April 2, which he claims could “permanently shut down” Canada’s automobile industry.

With both nations digging in, the economic and diplomatic stakes are higher than ever, leaving analysts and citizens bracing for the consequences of this rapidly unfolding showdown.