President Trump to Double Tariffs on Canadian Steel and Aluminum

On Tuesday morning, as reported by AP,1 US President Trump announced that the original tax on steel and aluminum coming from Canada will double—increasing from 25% to 50%—due to the premier of Ontario, Doug Ford, implementing 25% tariffs on electricity that the nation sells to the US.1,2

The impacted states include Michigan, Minnesota, and New York, who receive their electricity from Ontario. Meanwhile, the new tariff will still take effect tomorrow, March 12, as previously announced.

“Based on Ontario, Canada, placing a 25% tariff on “electricity” coming into the United States, I have instructed my Secretary of Commerce to add an additional 25% Tariff, to 50%, on all steel and aluminum coming into the United States from Canada,” stated Trump in a Truth Social post.3 “… This will go into effect tomorrow morning, March 12 … I will shortly be declaring a National Emergency on electricity within the threatened area. This will allow the US to quickly do what has to be done to alleviate this abusive threat from Canada. If other egregious, long-time tariffs are not likewise dropped by Canada, I will substantially increase, on April 2, the tariffs on cars coming into the US, which will, essentially, permanently shut down the automobile manufacturing business in Canada.”

The White House had previously noted that these steel and aluminum tariffs, are intended to protect valuable sectors that have been affected by “unfair trade practices and global excess capacity.” In adjusting these taxes, they will serve as an addition to Trump’s Section 232 tariffs that he had enacted back in 2018, which are originally derived from the Trade Expansion Act of 1962.4

On several occasions, Trump has expressed his interest in Canada becoming the 51st state, noting in that same post Tuesday morning that “the only thing that makes sense is for Canada to become our cherished 51st state. This would make all tariffs, and everything else, totally disappear.”

The steel and aluminum tariffs are independent of the other ones that had already being delayed one month, which were postponed due to a concern for economic consequences.4

References

1. Boak J. Trump doubles planned tariffs on Canadian steel and aluminum to 50% as trade war intensifies. AP. March 11, 2025. Accessed March 11, 2025. https://apnews.com/article/trump-economy-tariffs-stock-musk-business-8a5f28d9bb16e0b8a924d99ead0907fa

2. Gillies R. Ontario slaps 25% tax increase on electricity exports to US in response to Trump’s trade war. AP. March 10, 2025. Accessed March 11, 2025. https://apnews.com/article/canada-ontario-us-trump-tariffs-electricity-834dc3d9defd314923912f9bd8540e31

3. Donald Trump Truth Social Post. Truth Social. March 11, 2025. Accessed March 11, 2025. https://truthsocial.com/@realDonaldTrump/posts/114144217763824399

4. Saraceno N. Trump Delays Certain Tariffs on Canada and Mexico. Pharmaceutical Commerce. March 7, 2025. Accessed March 11, 2025. https://www.pharmaceuticalcommerce.com/view/trump-delays-certain-tariffs-canada-mexico