Trump says he will double tariffs on Canadian steel and aluminum to 50%

US President Donald Trump announced Tuesday that tariffs on all steel and aluminum products imported from Canada will increase to 50%.In a post on Truth Social, Trump stated that he had instructed Commerce Secretary Howard Lutnick to impose an additional 25% tariff, set to take effect Wednesday morning.According to the president, the move responds to Ontario’s 25% tariff on electricity exports to the US.“Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various US dairy products, which has long been considered outrageous. I will shortly be declaring a National Emergency on Electricity within the threatened area,” Trump wrote.He further warned of a “substantial” increase in auto tariffs by April 2 if Canada does not remove what he called “egregious, long-time tariffs.”In his post, Trump also revived the idea of Canada joining the US as the 51st state.“The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World — And your brilliant anthem, ‘O Canada,’ will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!” Trump wrote.Who’s subsidizing whom?Trump also repeated the claim that the US subsidizes Canada by over $200 billion annually.However, economist Jim Stanford, director of the Centre for Future Work in Vancouver, disputed these figures in an article published the University of British Columbia. According to US data, the bilateral trade deficit was $40 billion in 2023, down 29% from 2022, with a further 9% decline in the first nine months of 2024.“Compared to a two-way trade flow of almost $1 trillion per year, this imbalance is puny,” Stanford said.He also noted that the US enjoys a surplus in services trade and investment income from Canada, which helps offset any trade deficit.“Most Canadian exports to the US are unfinished inputs that American businesses rely on for production. Tariffs would increase costs for these materials, reducing US firms’ competitiveness in both domestic and export markets,” he explained.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com