Trump doubles Canada tariffs to 50%, escalating trade war amidst talks, market volatility, and Prime Minister’s leadership transition.

In Short

President Trump doubled tariffs on steel and aluminium imports from Canada, escalating trade tensions and causing market volatility. Ontario Premier Doug Ford planned a surcharge on U.S. electricity but later opted for negotiations, while Prime Minister Justin Trudeau’s successor is set to face challenges with Trump’s administration.

President Donald Trump announced the doubling of tariffs on imported steel and aluminium from Canada to 50%, escalating the trade war between the two countries. This decision, effective almost immediately, led to concerns about inflation and a volatile stock market.

Ontario Premier Doug Ford responded with plans for a 25% surcharge on electricity supplied to U.S. homes, demanding the removal of all tariff threats. However, he later agreed to suspend this surcharge and engage in talks with U.S. Commerce Secretary Howard Lutnick.

Trump also highlighted Canada’s agricultural trade protections, threatening further tariffs on car imports if these measures were not lifted. Despite market fluctuations following the tariff announcements, Trump remained unfazed, stating the economy needs rebuilding.

Ford indicated his province would not back down, apologising to Americans for what he termed an “unprovoked attack.” He noted that Ontario provides power to 1.5 million homes in the U.S.

The trade tensions intensified as Prime Minister Justin Trudeau’s successor, Mark Carney, prepared to assume office. Carney’s ability to negotiate with Trump was limited until he was officially sworn in.