In a move that has intensified trade tensions between the U.S. and Canada, President Donald Trump announced a 25% increase in tariffs on Canadian steel and aluminum, pushing the total duty to 50%. The tariff hike, set to take effect Wednesday, comes in response to Ontario’s 25% levy on electricity exports to the United States.
The decision has already rattled financial markets. The S&P 500 plummeted 2.7%—its sharpest one-day drop this year—while the Nasdaq fell 4.0%, its worst decline since September 2022. Analysts fear the tariffs could spark retaliatory measures from Canada and exacerbate global economic uncertainty.
“These tariffs are a necessary step to protect American industries from unfair trade practices,” Trump stated in a press conference. However, Canadian officials swiftly condemned the decision, warning of economic repercussions for both nations.
Economists predict that the steel and aluminum sectors in both countries will feel the impact, with potential job losses and price increases in key industries such as construction and automotive manufacturing. Trade negotiations between Washington and Ottawa are expected to intensify in the coming days.
According to The Globe and Mail, Canadian Prime Minister Justin Trudeau is considering countermeasures, including additional tariffs on American goods.
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