Trade war escalates: Trump announces sharp increase in tariffs for Canada.

Trump introduces tariffs on steel and aluminum from Canada

President Donald Trump announced a tariff increase on steel and aluminum from Canada to 50%. This is a reaction to the introduction of the Ontario electricity tax, which is exported to the USA. Bloomberg reports this.

Trump announced that these tariffs will take effect tomorrow, March 12. He also threatens to impose tariffs on Canadian auto parts if Canada does not lift tariffs on dairy products and other American goods.

This move by Trump negatively impacts American stock markets. The S&P 500 index decreased by 0.3%, while the Dow Jones index lost 1%.

Trump's decision escalates the trade dispute with Canada and threatens global markets, which have already suffered losses after the initial round of tariffs on Canada and Mexico.

At the beginning of his term, Trump imposed a 25% tariff on all goods from Canada but later postponed this move. When the tariffs came into effect, the president decided to exempt goods covered by the USMCA free trade agreement.

In response, Canada imposed tariffs on electricity and other goods from the USA. Ontario Premier Doug Ford introduced tariffs on electricity due to Trump's proposals for the annexation of Canada.

Trump also declared a state of emergency regarding electricity in the region and promises a rapid US response to the threat from Canada. Previously, he also declared a nationwide state of emergency in energy to expedite infrastructure development.