Just when you thought the global trade scene couldn’t get any hotter, President Trump turns up the heat with a scorching new round of tariffs on Canadian steel and aluminum. And why? Because Ontario decided to slap American customers in New York, Michigan, and Minnesota with a 25% hike on electricity. That’s right—this is a full-blown tariff tit-for-tat, and it’s about to shake up markets, businesses, and international relations in a big way.
Let’s break it down. Trump’s latest move adds another 25% to the existing tariffs, bringing the total U.S. duty on Canadian steel and aluminum imports to a whopping 50%. That’s not just a policy shift—that’s a hammer drop. And he didn’t stop there. Trump also put Canada on notice over its sky-high dairy tariffs—anywhere from 250% to 390%—and threatened to put the Canadian auto industry on ice if those tariffs don’t come down.
Naturally, the markets didn’t take kindly to the news. The Dow Jones took a nearly 600-point nosedive before clawing back some losses later in the morning. Investors aren’t fans of uncertainty, and this trade clash is introducing plenty of it.
Now, back to Ontario Premier Doug Ford—his move to raise electricity costs on three U.S. states triggered this whole thing, and he’s not exactly backing down. In fact, he’s floated the idea of cutting off electricity exports entirely. That’s a bold play, and it’s got Trump ready to escalate. The president announced plans to declare a National Emergency on Electricity for the affected states, vowing to “do what has to be done” to counter what he calls an “abusive threat from Canada.” And if that wasn’t enough, he’s now eyeing a fresh round of auto tariffs that could devastate Canada’s manufacturing sector.
Oh, and this isn’t just about Canada. Trump is preparing to roll out even more tariffs next month, targeting imports from Japan and the European Union. And let’s not forget the 25% tariffs he slapped on Canada and Mexico last week over fentanyl and illegal immigration concerns. Canada fired back with its own set of retaliatory tariffs on roughly $20.7 billion worth of American goods, and now we’ve got an all-out trade battle brewing.
Of course, not everyone is thrilled with this approach. New York Gov. Kathy Hochul blasted the tariffs, calling them “poorly conceived” and lacking any clear economic justification. She ordered a review of the situation and warned that these trade tensions could destabilize capital markets and hurt New York businesses. Meanwhile, in a dramatic twist, Trump dangled an unusual proposal: why not just make Canada the 51st state?
Yes, you heard that right. Trump suggested that full U.S. statehood for Canada would solve all these trade disputes overnight. No more tariffs, lower taxes for Canadians, and stronger military protection. He even sweetened the deal by promising to keep “O Canada” as an official anthem. While this may have been Trump’s signature bombastic style at play, it’s certainly got people talking.
🚨BREAKING: Karoline Leavitt says there will be MASSIVE consequences for Canada if they shut off electricity:
“There would be grave consequences imposed on Canada if they think about shutting off electricity for the United States and our citizens.”
pic.twitter.com/t4LqNCtZfO— Benny Johnson (@bennyjohnson) March 11, 2025
This tariff war is far from over. With Canada, Mexico, China, and now potentially Europe and Japan in the crosshairs, global trade is heading into some seriously uncharted waters. Whether these aggressive moves lead to better deals for the U.S. or spiral into a prolonged economic standoff remains to be seen. But one thing is for sure—this is just the beginning.
Update: Posted on X, “Four hours after President Trump escalated US tariffs on Canada, Ontario has agreed to suspend its 25-percent tariff on electricity exports to the US pending negotiations on a renewed USMCA trade deal.”
“Translation: Trump’s massive retaliation worked.”
