Washington (EFE).- The President of the United States, Donald Trump, announced on Tuesday that he would double the planned tariffs of 50% on Canadian steel and aluminum, expected to go into effect on Wednesday.
Through his social network Truth Social, the president said that the measure was in response to the decision by the Canadian province of Ontario, which on Monday began increasing the price of electricity it supplies to the US by 25%.
“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the US, I have instructed my Secretary of Commerce to add 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE US FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump wrote on Truth Social.
Tariffs of 25% on steel and aluminum imports from all countries are expected to go into effect on Wednesday. The main targets are Canada and Mexico, the main exporters of metals to the US, as well as other countries such as Brazil, Japan, the United Kingdom, and the European Union.
Trump also announced that he would declare a “national emergency on electricity” in the area affected by the 25% surcharge imposed by Ontario, which is estimated to affect 1.5 million households in New York, Michigan, and Minnesota.
National emergency declarations allow US presidents to use additional executive powers to deal with the crisis, however, it is unclear what practical effect this measure would have if Trump applied it to electricity.
Threatens over auto tariffs
The president also threatened to “substantially increase” tariffs on automobiles and parts entering the US from Apr. 2 if Canada does not eliminate the “outrageous” tariffs it maintains on US products.
Trump argued that tariffs on the auto industry would “permanently shut the automobile manufacturing business in Canada.” “Those cars can easily be made in the US!” he said.
On Mar. 4, the president had already announced a 25% tariff on imports from Canada and Mexico, however, he decided to make two exceptions: one for goods and services covered by the NAFTA free trade agreement and the other for the two countries’ automotive sectors.
The decision to exempt the automotive sector came at the request of major US manufacturers – General Motors, Ford, and Stellantis – who assemble vehicles in Mexico and Canada and fear they will be economically affected as many cars cross the border several times before being finally assembled.
Canadian tariffs on dairy products
In order not to impose tariffs on the automotive sector, Trump demanded that Canada eliminate the tariffs it imposes on US products, citing, in particular, the “Anti-American Farmer Tariff of 250% to 390% on various US dairy products, which has long been considered outrageous.”
While Canada maintains tariffs of over 200% on dairy products imported from the US, these high tariffs only apply once a certain annual import quota, agreed in advance by both countries, has been exceeded.
Trump’s message also included harsh criticism of Canada for paying “very little for National Security,” while stressing his well-known threat to annex the country to make it the 51st state of the US.
“The only thing that makes sense is for Canada to become our cherished Fifty-First State. This would make all Tariffs, and everything else, totally disappear,” Trump wrote. EFE
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