Trump Boosts Canadian Steel and Aluminum Tariffs to 50%: What This Means for Ontario Energy Costs and Trade Relations

On February 14, 2025, Canadian Prime Minister Justin Trudeau visited a steel production line at ArcelorMittal Dofasco in Hamilton, Ontario.

Recently, President Donald Trump announced a significant increase in tariffs on Canadian steel and aluminum imports. He said the tariffs would rise by an additional 25%, raising the total to 50%. This decision was shared in a post on Truth Social.

Trump’s move came in response to a new tax imposed by Ontario’s government on electricity exports to the U.S. This tax, initiated by Premier Doug Ford, was meant to counteract the previous tariffs Trump placed on Canadian imports.

In his announcement, Trump expressed frustration over Ontario’s actions. He indicated that he had instructed his Secretary of Commerce to impose these new tariffs, which would take effect the next day.

The market reacted negatively. After Trump’s announcement, the Dow Jones dropped over 500 points, and the S&P 500 fell by 0.8%. Concerns about a recession were already weighing on investors.

In response, Ford vowed to maintain Ontario’s electricity tariff, describing Trump’s actions as an unprovoked attack on Canada. He urged American business leaders to speak out against the escalating trade tensions.

In addition to the tariffs, Trump demanded that Canada lift a tariff on U.S. dairy products. He warned of declaring a National Emergency concerning electricity in the affected areas, suggesting it would allow the U.S. to respond quickly to what he labeled an abusive threat from Canada.

Trump’s stance on trade has created tension with Canada and Mexico, with many Canadian leaders calling out his actions as detrimental to their economy. Former Prime Minister Justin Trudeau even suggested that Trump’s approach is an attempt to weaken Canada for political gain.

Trump further linked his tariff plans to a controversial idea of making Canada the “Fifty First State.” He argued that this would eliminate tariffs and lead to a stronger alliance between the two countries.

These ongoing trade disputes reflect the complex relationship between the U.S. and Canada, with consequences impacting jobs and industries across both nations.