U.S. President Donald Trump announced he is doubling planned tariffs on aluminum and steel entering the U.S. from Canada, to 50 percent.
The move comes in response to Ontario Premier Doug Ford's decision to impose a 25-percent tariff on electricity entering the United States.
Breaking: This afternoon, Ontario Premier Doug Ford announced a temporary suspension of the electricity tariff following agreement with U.S. officials to hold talks this week.
Effective tomorrow, March 12
The 50-percent levy on aluminum and steel is set to go into effect on Wednesday morning.
Increased tariffs on vehicles entering the U.S.?
As widely reported, the U.S. administration is also threatening to “significantly increase” tariffs on vehicles entering the US on April 2 “if Canada does not similarly abandon other egregious and long-standing tariffs”. According to the American president, the measure would “essentially shut down the auto industry in Canada permanently”.
Unsurprisingly, stock markets have not reacted well to the latest statements.
And further upheaval can be expected if the 25-percent tariffs on virtually all Canadian products entering the U.S. come into effect as threatened on April 2. Indeed, the U.S. president is considering setting a reciprocal rate, equivalent to the tariffs demanded in response by Canada.
How far will this escalation go? We'd all like to know. One thing is certain: the markets don't like uncertainty, and they don’t like this.