US President, Donald Trump has announced he would raise tariffs on Steel and Aluminum imported from Canada to 50% in response to the tariff imposed on Electricity supply to the US by the Canadian Government.
On Monday, Ontario Premier Doug Ford announced that his government would impose a 25-percent surcharge on electricity exports to the US states of Michigan, Minnesota, and New York.
Speaking on the surcharge on electricity which would cost families and businesses as much as $276,000 ($400,000 Canadian dollars) per day, Ford had said “Ontario electricity powers 1.5 million American homes and businesses in those US states.
“Let me be clear, I will not hesitate to increase this charge. If necessary, if the United States escalates, I will not hesitate to shut the electricity off completely,” He Concluded.
Trump Response
In a series of posts on his Truth Social Platform, Trump announced an increase in tariffs to 50% as opposed to the planned 25%. “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,”
in response to Canada’s threat, he said “I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada.
“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.”
“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff.” he concluded.
The latest tariff war is the latest phase in the diplomatic tensions between both countries after Trump called for Canada to be the US’ 51st state.
