- President Trump has announced plans to double the tariff on Canadian aluminum.
- He also threatened to “permanently shut down” Canada’s automotive industry.
- Trump says the only thing that “makes sense” is for Canada to become a state.
President Trump has announced plans to slap an additional 25% tariff on aluminum imported from Canada. This would bring the tariff to 50% and seriously squeeze a number of industries including automakers.
Trump said the move was in response to Ontario’s announcement of a 25% surcharge on all electricity exports to the United States. This was revealed on Monday as part of the province’s suite of retaliatory measures to U.S. tariffs and will impact 1.5 million homes and businesses in Michigan, Minnesota, and New York.
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The surcharge is expected to generate $300,000 – $400,000 CAD ($207,406 – $276,588 USD) per day and Ontario’s government said the funds would be used to support workers, families, and businesses. Ontario’s Premier, Doug Ford, also promised “The government will use every tool at its disposal to protect Ontario workers and families from President Trump’s tariffs, including increasing this surcharge at any time or, if the U.S. escalates, cutting off electricity exports to the U.S. completely.”
That could have a devastating impact on Americans, but Trump promised to declare a “National Emergency on Electricity within the threatened area.” He said, “This will allow the U.S. to quickly do what has to be done to alleviate this abusive threat from Canada.”
Trump then threaten to “substantially increase” the tariff on vehicles imported from Canada on April 2. He said this would “permanently shut down the automobile manufacturing business in Canada.” Of course, Canada’s automotive industry is America’s automotive industry so Trump would harm GM, Ford, and Stellantis in the process.
Trump then lost his grip on reality and said, “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.” He also claimed Canadians would pay lower taxes and be more secure as the “artificial line of separation” would “finally disappear.”
Update: It appears things are on hold as Ford released a statement saying “Secretary Lutnick agreed to officially meet with Premier Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed USMCA ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota.”
