Extract from ABC News
Donald Trump says Canada should become the United States' 51st state. (Pool via AP)
In short:
Donald Trump is doubling steel and aluminium import tariffs for Canada, from 25 per cent to 50 per cent.
He says this is in retaliation for a Canadian province placing a surcharge on its electricity exports into three US states.
What's next?
Tariffs on all steel and aluminium imports into the US are set to come into effect on Wednesday.
US President Donald Trump says he will double planned steel and aluminium tariffs on Canada, escalating the trade war with the United States' northern neighbour.
Mr Trump also told followers on his social media platform Truth Social: "The only thing that makes sense is for Canada to become our cherished Fifty First State."
He also vowed to declare a national electricity emergency, responding to threats from Ontario to suspend electricity exports to three US states.
The Canadian province's premier, Doug Ford, had earlier announced Ontario would place a 25-per-cent surcharge on the electricity it provides to the US states of Minnesota, New York and Michigan.
"I will not hesitate to increase this charge," Mr Ford said. "If the United States escalates, I will not hesitate to shut the electricity off completely."
The tariffs are an early challenge for Mark Carney, who is set to replace longtime Prime Minister Justin Trudeau. (AP: Sean Kilpatrick)
In response, Mr Trump said he had instructed his secretary of commerce to increase the 25-per-cent steel and aluminium tariffs — being levied on all importers to the United States — to 50 per cent for Canada specifically.
The increased tariffs would come into effect from Wednesday.
Canada's incoming prime minister Mark Carney described the increased tariffs as an "attack" on Canadian workers, families and businesses.
He said his government would keep retaliatory tariffs in place "until the Americans show us respect and make credible, reliable commitments to free and fair trade".
Last month, Mr Trump announced a 25-per-cent tariff on all steel and aluminium imports into the United States, including those from Australia.
Canada is the biggest exporter of aluminium into the US.
Mr Ford, after responding to Mr Trump by raising electricity prices, said US business leaders and citizens needed to speak up against the "chaos" caused by Mr Trump's launching of a trade war.
"If we go into a recession it's self made by one person. It's called President Trump's recession," Mr Ford told MSNBC.
"It shouldn't be this way. We should be booming, both countries."
Stock markets have fallen in recent days, spooked by the potential economic impacts of tariffs.
On Sunday, Mr Trump told Fox News the US was experiencing a "period of transition" when asked whether the country was facing a recession.
The S&P 500 stock index tumbled 2.7 per cent on Monday, local time, erasing the gains it made after Mr Trump's victory in November 2024.
It fell a further 0.8 per cent in Tuesday morning trading.
AP/ABC
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