Trump doubles metal tariffs on Canada to 50%, escalating trade war

WASHINGTON - President Donald Trump on Tuesday doubled his planned tariff on all steel and aluminum products coming into the United States from Canada, bringing the total to 50%, in response to the province of Ontario placing a 25% tariff on electricity coming into the US.

Trump said in a post on Truth Social he has instructed his commerce secretary to add an additional 25% tariff on the products that will go into effect on Wednesday morning.

"Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various US dairy products, which has long been considered outrageous. I will shortly be declaring a National Emergency on Electricity within the threatened area," Trump wrote.

He also threatened to "substantially increase" tariffs on cars coming into the United States on April 2 "if other egregious, long time Tariffs are not likewise dropped by Canada."

The latest broadside by Trump on tariffs delivered another painful jolt to financial markets, with the benchmark S&P 500 index sliding almost 1.0% as investors worry the import taxes will hurt US growth and rekindle inflation. The Toronto Stock Exchange's S&P/TSX Composite index was down about 0.5% and the Canadian dollar fell against the greenback.

Broader 25% levies on all steel and aluminum imported to the US from anywhere are due to take effect early on Wednesday.

Those tariffs will apply to millions of tons of steel and aluminium imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the US duty-free under carve-outs. Trump has vowed that the tariffs will be applied "without exceptions or exemptions" in a move he hopes will aid the struggling US industries.

Trump's hyper-focus on tariffs since taking office in January has rattled investor, consumer and business confidence in ways that economists increasingly worry could cause a recession. A small business survey on Tuesday showed sentiment weakening for a third straight month, fully eroding a confidence boost following Trump's November 5 election victory.

- REUTERS