President Trump just locked and loaded all of his tariff ammunition and aimed it in Canada’s direction.
The first shot will fire off at midnight, when 50% Trump tariffs will take effect on U.S. steel and aluminum imports, while other countries will face 25% tariffs.
The S&P 500 turned lower in continued volatile action on the trade war escalation. U.S. steel and aluminum stocks such as Nucor (NUE) climbed, while steel users such as General Motors (GM) retreated.
Trump’s barrage came after Ontario’s premier, Doug Ford, threatened to add 25% to the cost of electricity shipped to about 1.5 million U.S. customers. Ontario serves customers in New York, Michigan, and Minnesota.
Trump, in a social media post announcing the escalation, also said that he’ll declare an emergency, likely providing relief to affected power customers.
Trump’s post also demanded that Canada “immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products.”
U.S. President Donald Trump dramatically upped the ante in his trade war with Canada Tuesday morning.
In a Truth Social post, the president wrote he will double the tariff on steel and aluminum, expected tomorrow, and said he will declare a “National Emergency on Electricity” in areas affected by Ontario’s 25 percent surcharge on energy exports to the U.S.
To top it off, Trump made another pitch for Canada “to become our cherished Fifty First State.”
The White House warned of “grave consequences” should Ontario Premier Doug Ford follow through on his threat to shut off electricity to the U.S.
Leavitt says the US president has made it very clear that “Canada would be very wise” not to shut down power to the American people.
This is in response to warnings from Ontario Premier Doug Ford that he might pull the plug on electricity supplies to US states such as New York, Minnesota, and Michigan that his province exports to.
If this happens, the spokeswoman says it would be for the president to decide whether to offer relief to affected areas.
