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Trump doubles tariffs on Canada's metals

On Tuesday, President Donald Trump doubled the planned tariffs on steel and aluminum imports from Canada. This was in response to Ontario's decision on Monday to impose a 25% tariff for its electricity exports into the U.S.

Trump posted on his Truth Social media page that he had instructed his Commerce Secretary to impose an additional 25% tariff for metals products. The new tariff will be in effect Wednesday morning.

"Canada must also immediately remove their anti-American Farmer tariff of 250% to 390 % on various U.S. Dairy Products, which is long considered outrageous. "I will declare a National Emergency on Electricity in the affected area," Trump wrote.

He also threatened "substantially increasing" tariffs on vehicles coming into the U.S. starting April 2, "if other egregious and long-standing Tariffs from Canada are not likewise dropped."

In a message posted on X after Trump's latest threats, Ontario Premier Doug Ford – whose government is raising the price of electricity it generates in parts of New York State, Michigan, and Minnesota – said he wouldn't back down until Trump's tariffs against Canadian imports into the U.S. are "gone for ever."

Investors are worried that the tariffs will harm U.S. economic growth and ignite inflation. The S&P/TSX composite index of the Toronto Stock Exchange was down by about 0.5%, and the Canadian Dollar fell against the dollar.

Early on Wednesday, a 25% levy on all steel and aluminium imported into the U.S. will be increased.

These tariffs will be applied to millions of tonnes of steel and aluminium imports from Canada and Brazil. They also apply to South Korea, Mexico and other countries which had previously entered the U.S. without paying duty. Trump has promised that tariffs would be applied "without exemptions or exceptions" to help struggling U.S. businesses. Since taking office, Trump has focused his attention on tariffs in a way that has shaken investor, consumer and company confidence. Economists are increasingly concerned about the possibility of a recession. The small business survey released on Tuesday revealed that sentiment has weakened for the third consecutive month, erasing any confidence boost Trump received after his November 5th election win.

Last week, economists polled showed that risks for the Mexican economy are increasing amid chaos in the implementation of U.S. Tariffs. This has caused deep uncertainty among businesses and decision makers. In the surveys, 70 out of 74 economists from Canada, the U.S., and Mexico said that they believed the risks of a possible recession have increased. The upside risks of inflation in the U.S. also rose. (Reporting and editing by Dan Burns, Katharine Chiacu, and David Ljunggren; Additional reporting in Ottawa by David Ljunggren; Writing by Katharine Jackson; Editing by Paul Simao).

(source: Reuters)