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US president announces new tariffs and threatens annexation of Canada in response to Ontario’s energy tariffs. Trump aims to bring Canada’s auto industry to its knees
US President Donald Trump today announced a doubling of tariffs on Canada, introducing 50% duties on all steel and aluminium from the neighbouring country. This measure, which will come into force tomorrow, 12 March, was justified as a response to the 25% tariffs imposed by Ontario on electricity exported to three US states: Michigan, Minnesota and New York. The tariff increase, which costs the US about $400,000 a day, is part of a trade escalation between the two countries.
In a post on Truth Social, Trump also threatened to soon declare a ‘national electricity state of emergency’ in regions of the US affected by the Canadian tariffs, allowing for a swift government response to deal with what he called an ‘abusive threat’. Trump also demanded that Canada immediately lift tariffs on US dairy products, which he said range from 250% to 390%. If these demands are not met, the president threatened to drastically increase duties on cars imported from Canada, severely affecting the country’s automotive sector, which could face a ‘permanent shutdown’ in the US market. Trump reiterated that these cars could easily be manufactured in the US.
This is not the first time the US president has targeted Canada with aggressive economic measures. In his lengthy post, Trump took up one of his most controversial proposals: the annexation of Canada as the 51st state of the United States. According to the US president, this move would completely eliminate the issue of tariffs and improve the security and economy of Canadians. ‘The only thing that makes sense is to become our dear 51st state,‘ Trump wrote, adding that Canadians’ taxes would be significantly reduced and the northern border would become a non-issue. He also accused Canada of depending too much on US military protection, claiming that the US government provides over $200 billion a year for the security of its northern neighbour.
Trump’s statements came at a time of political instability in Canada. Ontario Premier Doug Ford responded to the US president’s threats by stating that Canada will not give in to tariffs and accused Trump of causing US markets to collapse with his tariff policy. Ford requested an urgent meeting with the US president to try to resolve the crisis, which threatens to worsen in the coming days.
These trade tensions have intensified just as a major political change is taking place in Canada. Justin Trudeau, who has announced his resignation as prime minister, is about to be replaced by Mark Carney, former governor of the Bank of Canada and the Bank of England, who has become leader of the Liberals and premier-designate. Trudeau’s party was able to regain ground in the polls thanks to Trump’s attacks, which allowed the Liberals to overtake the Conservatives after being trailing for over a year.
Trump has also challenged the validity of the 1908 agreement that formalised the border between the US and Canada, especially with regard to the division of lakes and rivers shared by the two countries. The US president’s latest move risks further souring relations with one of the US’s main economic and military allies.
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