President Trump raised tariffs on Canadian steel and aluminum to 50% in response to Ontario’s electricity surcharge, effective March 12, according to Jordan Fabian and Jennifer A Dlouhy of Bloomberg. He also threatened higher tariffs on Canadian auto parts if Canada doesn’t remove dairy tariffs. This escalation risks severe impacts on Canada’s auto industry and could lead to a national emergency declaration on electricity. They write:
President Donald Trump said he was increasing the steel and aluminum tariff on Canadian goods to 50% to retaliate against Ontario’s move to place a levy on electricity sent to the US.
“This will go into effect TOMORROW MORNING, March 12th,” Trump said in a social media post. The move doubles a planned 25% metals tariff set to take effect just after midnight.
Trump said he would also “substantially increase” tariffs on Canadian automobile parts on April 2 if the country does not drop tariffs on dairy products and other US goods.
The move would “essentially, permanently shut down the automobile manufacturing business in Canada,” Trump said. […]
Canada responded to the initial tariffs with a series of retaliatory measures, including a 25% surcharge on electricity sent to Minnesota, New York, and Michigan from Ontario. Canada’s federal government has also imposed tariffs on items like American orange juice, footwear and motorcycles. […]
Trump already declared a nationwide energy emergency his first day in office, opening the possibility of using special and little-used subsidies in federal law in new ways to propel the construction of pipelines, power lines and other projects.
In US areas now receiving electricity from Ontario, the Trump administration could potentially use powers to press coal power plants into more service, potentially expedite new generation projects or enable swifter permitting and construction of electrical transmission infrastructure.
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