Trump Hits Canada With More Tariffs Amidst Ontario’s Retaliation

President Donald Trump’s latest tariff measures are sending shockwaves through the crypto market, with no signs of easing.

Earlier in February, Canada and Mexico successfully delayed the tariffs, providing temporary relief.

However, tensions reignited after Ontario Premier Doug Ford imposed a 25% surcharge on electricity exports to the US, prompting Trump to threaten severe economic retaliation.

In a series of Truth Social posts on Tuesday, Trump denounced Ford’s move as an “unprovoked attack” and vowed to make Canada “suffer financially,” claiming the fallout would be “written in history books for years to come.”

The electricity levy, which took effect Monday, was a direct response to Trump’s prior tariffs on Canadian goods.

Within hours, Trump escalated the dispute by announcing 50% tariffs on Canadian steel and aluminum, effective Wednesday morning, signalling his administration’s firm stance in the trade conflict.

While initially vague on specifics, Trump later clarified that these tariffs have a set deadline.

He also highlighted broader trade concerns, including dairy exports, auto manufacturing, and military spending.

In a particularly provocative remark, he reiterated his call for the US to annex Canada—a demand that has become an unexpected and contentious element of the ongoing tariff battle.

Trump Threatens Additional Tariffs on Canadian Auto Imports on 2 April

Trump’s trade offensive is expanding beyond steel and aluminum.

He is now demanding that Canada eliminate what he calls an “Anti-American Farmer Tariff” on US dairy products, warning that failure to comply will result in significantly higher tariffs on Canadian auto imports starting 2 April.

According to Trump, these measures would “essentially, permanently shut down the automobile manufacturing business in Canada.”

In addition, Trump is preparing to declare a National Emergency on Electricity in response to Premier Doug Ford’s surcharge on US electricity imports.

He posted on Truth Social:

“This will allow the U.S. to quickly do what has to be done to alleviate this abusive threat from Canada.”

While the specifics of such an emergency declaration remain unclear, Trump has previously used similar tactics to justify sweeping trade restrictions.

With tensions escalating, the full impact of these aggressive measures on US-Canada relations—and global markets—remains to be seen.

Ford Fights Back, Threatens to Cut Off Electricity

Ford is not backing down.

Shortly after Trump’s Truth Social posts, he appeared on MSNBC, reaffirming that Ontario will not remove the 25% surcharge on US-bound electricity.

Bashing Trump’s latest tariffs and calling them an “unprovoked attack” on Canadian families and jobs, Ford expressed:

“We will not back down. We will be relentless.”

In a later CNBC interview on Money Movers, Ford escalated his stance, warning that Ontario may cut off electricity exports entirely if Trump “continues to hurt Canadian families.”

He singled out Michigan, New York, and Minnesota—states that heavily rely on Ontario’s power supply.

Ford said:

“I won’t hesitate to do that. That’s the last thing I want to do, but I won’t hesitate.”

Meanwhile, Trump’s shifting tariff policies have fuelled months of economic uncertainty.

After initially imposing tariffs in February, he delayed them, reimposed them, partially postponed them again, and is now doubling down.

As tensions mount, the standoff threatens to destabilise trade relations between the two nations, leaving businesses and consumers caught in the crossfire.

Is The Global Tit-for-Tat Trade War Going Too Far?

Trump’s latest tariff threats have intensified the standoff, leaving both sides with few clear exit strategies.

While he previously hesitated on imposing tariffs against Canada and Mexico, it remains uncertain whether he will retreat again.

This unpredictability is fuelling market instability, potentially posing a greater economic threat than the tariffs themselves.

If confidence erodes, ripple effects could extend to the crypto market and broader economy, raising concerns about a looming recession.

Despite the turbulence, a potential diplomatic breakthrough is emerging.

Ford announced that US Secretary of Commerce Howard Lutnick has extended an olive branch, committing to work toward a balanced free trade agreement.

Lutnick is set to meet with Ford and the US Trade Representative in Washington on 13 March to discuss a revised USMCA before the 2 April tariff deadline.

In response, Ontario has temporarily suspended its 25% surcharge on electricity exports to Michigan, New York, and Minnesota.

However, in such a volatile climate, it remains uncertain whether any single policy shift will resolve the crisis.