The day before steel and aluminum tariffs are set to go into effect, President Trump announced he would specifically set tariffs on Canadian steel and aluminum at double the rate of the rest of the world.
"I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA," Trump on his social media site. "This will go into effect TOMORROW MORNING, March 12th."
The last-minute change to steel and aluminum tariffs, which Trump had already set to go into effect at midnight, is the latest in his . Trump had promised to make tariffs the centerpiece of his second term, and this term has indeed been marked by a series of tariffs imposed, threatened and withdrawn. The uncertainty caused by those rapid shifts has rattled stock markets and other economic indicators.
In his post, Trump said he was imposing the tariffs in response to Ontario's on electricity exports, which the province said would affect customers in Minnesota, Michigan and New York.
Ontario Premier Doug Ford imposed that surcharge in response to tariffs Trump has threatened — and repeatedly delayed — against Canada. In his latest move, Trump imposed tariffs on Canadian goods last week, then delayed some of them for a month.
Ford said in a statement that it won't repeal the electricity surcharge "until the threat of tariffs is gone for good."
Trump said he would declare a "National Emergency on Electricity" to support the affected area, though it was not immediately clear what that would entail. Generally, to deal with a crisis — a tool Trump has used a number of times.
The president also once again proposed that Canada become a U.S. state.
"This would make all Tariffs, and everything else, totally disappear," Trump wrote.
It's not clear why Trump has fixated on Canadian statehood, an idea that Canadian leadership has repeatedly and .
A U.S. tariff on steel and aluminum means that U.S. companies will pay more to import those products. That can lead to higher prices for American businesses and consumers. Canada is of both steel and aluminum to the United States, meaning a 50% tax on those imports could have substantial economic effects.
Stock indexes have fallen markedly in recent weeks, as Trump's tariffs have contributed to economic uncertainty. At market open on Tuesday, the S&P 500 was more than 7% below where it was after Trump was inaugurated.
While the stock market does not necessarily track overall economic health, other indicators have shown weakness. and have both posted recent declines. In a weekend interview with Fox °µºÚ±¬ÁÏ, Trump would not rule out the possibility of recession.
Trump and administration officials have repeatedly framed any economic fallout from tariffs as short-term pain. The administration has said the goals of tariffs include higher revenue, a boost to manufacturing jobs in the U.S., and a slowdown in fentanyl entering the country. Those goals in many ways — a tariff might boost American manufacturing by deterring the purchase of foreign goods, for example. But then, that tariff would not create much revenue, as businesses and consumers would be buying American goods, and therefore not paying the tariff.
Trump is scheduled to speak Tuesday evening to the Business Roundtable, an association of CEOs of major American companies. Those leaders will likely be seeking clarity on the president's economic strategy and goals.
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