President Donald Trump is ratcheting up pressure on Canada, announcing late Monday that he will double tariffs on Canadian steel and aluminum to 50 percent, citing Ontario’s move to levy a tax on U.S. electricity exports.
“This will go into effect TOMORROW MORNING, March 12th,” Trump declared in a Truth Social post, emphasizing the urgency of the measure. The hike comes just hours before an already-planned 25 percent tariff was set to take effect at midnight, marking yet another sharp shift in U.S.-Canada trade relations under Trump’s second term.
The president’s move underscores his determination to confront what he sees as Canada’s unfair trade policies, particularly its long-standing protectionist measures on key industries.
Trump further warned that if Canada does not roll back tariffs on dairy products and other U.S. agricultural products, he will impose even broader restrictions on Canadian exports starting April 2.
“Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous,” Trump said.
The White House is also preparing to increase tariffs on Canadian automobiles and auto parts, a move that could deliver a serious blow to Canada’s manufacturing sector. In February, Trump delayed a round of tariffs on Canadian goods, and last week, he announced a one-month extension for most imports, including auto parts, after consultations with U.S. automakers.
“If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!” Trump said.
Trump also argued that the U.S. has been subsidizing Canadian national security.
The tariff escalation underscores Trump’s long-standing view that Canada has benefited disproportionately from trade with the U.S. while shielding key industries behind protectionist policies. Ontario’s new electricity levy, which the Trump administration has framed as an unjustified attack on U.S. consumers, was the immediate catalyst for the latest tariff hike.
The Ontario electricity levy has become a flashpoint, with Trump officials portraying it as an attack on U.S. consumers—one that exposes the risks of relying on Canada for key resources.
For years, critics of Trump’s steel and aluminum tariffs have argued that Canada is a reliable supplier and that restricting its metals exports would create unnecessary economic disruptions. But Ontario’s willingness to raise electricity prices on U.S. states and threaten energy exports has, in Trump’s view, undermined that argument. It is now clear that Canada is willing to use its productive capacity to influence U.S. policy, something that it could do in reaction to policies—from tax rates, to abortion, to foreign relations—unrelated to trade.
“If Canada is willing to restrict energy exports, what’s stopping it from weaponizing other industries? The Trump administration is making the case that Washington cannot afford to gamble its economic and strategic security on the goodwill of Ottawa,” a Trump official who spoke on the condition of anonymity said.
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