Threat against Canada

50 percent on steel: Trump follows up against Canada

Canada wants to counter the tariffs from the USA with its own measures.(Bild: AFP/COLE BURSTON)

US President Donald Trump has announced his intention to further intensify the trade war he has started against Canada. A threat that apparently had an effect. Because just a few hours after the announcement, the US President was no longer willing to hear about it.

Tariffs on all imports of steel and aluminum from the neighboring country would be doubled from 25 to 50 percent. They would come into force on Wednesday, the Republican announced on Tuesday afternoon via his short message service Truth Social. A corresponding instruction had been issued to Secretary of Commerce Howard Lutnick.

Trump justified his action by stating that the Canadian province of Ontario wanted to impose a 25 percent surcharge on electricity exports to the USA. At the same time, he signaled that he would take even tougher action against Canada. "In addition, Canada must immediately drop its anti-American farmer tariffs of 250 to 390 percent on various US dairy products, which have long been considered outrageous," said Trump.

He also threatened to "substantially increase" import tariffs on cars into the USA on April 2. And he would do so "if Canada does not also lift other outrageous, long-standing tariffs". The Canadian province of Ontario had described the increased electricity export tariff as a protest against US tariffs that Trump had imposed on Canadian goods.

Both sides approach each other 
Trump's threats apparently worked. On Tuesday, Ontario's head of government Doug Ford promptly declared that the increase in electricity tariffs would be suspended again. This comes after "productive" talks with US Secretary of Commerce Howard Lutnick.

Talks with Lutnick and US Trade Representative Jamieson Greer are scheduled for Thursday in Washington to discuss a renewal of the free trade agreement between the USA, Canada and Mexico, Ford added. On Tuesday evening, Trump also said he no longer wanted to hear about tariff increases and "probably" wanted to lower tariffs against Canada.

The northern trading partner and Mexico have already been facing US punitive tariffs for weeks. Trump is relying on tariffs to force concessions and ultimately strengthen the US economy. In the short term at least, however, the tariffs will also affect US companies and consumers, for example if the levies make production in sectors such as electronics or vehicle manufacturing more expensive.