Trump Hits Canada with Massive Tariffs—And Wants It to Become the 51st State

President Donald Trump announced on Tuesday that tariffs on Canadian steel and aluminum imports will be increased by an additional 25%, bringing the total duties to 50%. The new tariffs will take effect on Wednesday morning. Trump justified the move as a response to the Ontario government's decision to impose a 25% tax on electricity exports to the United States.

The announcement sent financial markets into a downturn, with the Dow Jones Industrial Average falling more than 500 points. The S&P 500 and the Nasdaq Composite also recorded declines of 0.8% and 0.4%, respectively. Investors have been reacting to concerns about the broader economic implications of Trump’s tariff policies and growing fears of a potential recession.

Ontario Premier Doug Ford criticized the tariff hike and stated that Ontario would maintain its countermeasure on U.S. electricity exports. He called Trump's move an "unprovoked attack" on Canada and its economy. Speaking on MSNBC, Ford said, "We will not back down. We will be relentless." He urged American business leaders to take a stand against the escalating trade dispute, warning of severe economic consequences.

Trump has repeatedly imposed and then delayed tariffs on Canada and Mexico since early February. Despite temporary suspensions, he has ultimately reimposed them, leading to increased tensions between the neighboring countries. Ford reaffirmed his commitment to Ontario's tariff, stating that he did not understand why Trump continued to target allies, while calling on U.S. corporate leaders to push back against the policy.

In his social media post, Trump also demanded that Canada remove what he described as an "Anti-American Farmer Tariff" on U.S. dairy products. Additionally, he warned that he would soon declare a "National Emergency on Electricity" to counter what he characterized as an economic threat from Canada. Trump further signaled his intent to raise tariffs on Canadian auto imports on April 2 unless Canada lifts "egregious, long-time tariffs" on American goods. According to Trump, such a move would "essentially, permanently shut down the automobile manufacturing business in Canada."

The White House did not immediately respond to requests for further clarification on the president's statements. Trump has continued to promote tariffs as a key economic policy tool and has set April 2 as a deadline for imposing "reciprocal tariffs" on countries that maintain duties on American products.

Trump’s tariffs on Canada and Mexico have intensified trade tensions, particularly in Canada, where calls to boycott U.S. products have gained momentum. Canadian leaders have repeatedly condemned Trump's trade policies, with former Prime Minister Justin Trudeau accusing Trump of trying to weaken Canada as a means of justifying its annexation.

Trump has previously floated the idea of making Canada the 51st state, but in Tuesday’s post, he linked the concept more directly to his tariff policies. He argued that merging the two countries would eliminate trade disputes, reduce Canadians' taxes, and ensure a stronger North American economy. "The only thing that makes sense is for Canada to become our cherished Fifty First State," he wrote. He added that this would make all tariffs disappear, claiming it would create "the safest and most beautiful Nation anywhere in the World."

Trump also reassured Canadians that their national anthem, "O Canada," would continue to be recognized, but as a representation of "a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen."