Trump threatens dramatic increase on tariffs to Canada

#CNN #News President Donald Trump threatened a sharp escalation in the budding trade war with Canada in retaliation for Ontario’s export surcharge on US electricity. Trump said he would respond in kind to Ontario’s 25% surcharge on electricity to New York, Minnesota and Michigan with a 25% tariff on Canadian electricity. That could increase costs even more for Americans, particularly in northern states that rely on energy from Canada. #CNN #News As of March 12, 2025, the trade tensions between the United States and Canada have escalated, significantly impacting both economies. President Donald Trump announced plans to double tariffs on Canadian steel and aluminum imports to 50%, citing the need to protect U.S. industries. This decision has heightened concerns about inflation and economic stability in both countries. citeturn0news26 In response, Ontario Premier Doug Ford initially threatened a 25% surcharge on electricity exports to the U.S. but later suspended this plan after discussions with U.S. officials. This move led President Trump to halt the proposed tariff increase, maintaining the existing 25% tariffs. citeturn0news22 The trade dispute has also affected financial markets, with the tech-focused Nasdaq entering a correction and the S&P 500 nearing one. Economists express concerns that prolonged trade tensions could lead to higher prices, reduced consumer spending, and delayed business investments, potentially pushing the economy into a recession. citeturn0news21 Mark Carney, the incoming Prime Minister of Canada, has vowed to stand firm against U.S. trade policies, asserting that Canada will "win" the trade war. Carney, a former central banker with experience managing economic crises, emphasizes the importance of defending Canadian interests in the face of U.S. tariffs and annexation threats. citeturn0search3 These developments have strained U.S.-Canada relations, with both nations grappling with the economic and political ramifications of the ongoing trade tensions. navlistEscalating U.S.-Canada Trade Tensions Impact Economiesturn0news26,turn0news22,turn0news21