Trump Raises Canadian Aluminum Tariff, Pledges to Wreck Their Auto Industry | Carscoops

      The President of the United States proposed that Canada should become a state in order to resolve the trade conflict.

      President Trump has revealed intentions to double the tariff on aluminum imported from Canada.

      He has also issued a warning to “permanently shut down” the automotive sector in Canada.

      Trump stated that the only logical solution is for Canada to join as a state.

      He has announced plans to impose an additional 25% tariff on Canadian aluminum imports, raising the total tariff to 50%, which would significantly affect several industries, particularly automakers.

      Trump indicated that this decision was a reaction to Ontario's announcement of a 25% surcharge on all electricity exports to the U.S., which was disclosed on Monday as part of the province’s retaliatory actions against U.S. tariffs. This surcharge will impact 1.5 million households and businesses in Michigan, Minnesota, and New York.

      The surcharge is projected to raise between $300,000 and $400,000 CAD ($207,406 - $276,588 USD) each day, with Ontario's government stating that the money will support workers, families, and businesses. Ontario’s Premier, Doug Ford, also assured that “The government will leverage all available options to protect Ontario workers and families from President Trump’s tariffs, including the possibility of increasing this surcharge or completely halting electricity exports to the U.S. if tensions escalate.”

      This move could have severe repercussions for Americans, but Trump pledged to declare a “National Emergency on Electricity within the affected areas.” He remarked, “This will enable the U.S. to take swift action to address the abusive threat from Canada.”

      Trump then threatened to “substantially increase” tariffs on vehicles imported from Canada on April 2, claiming this would “permanently shut down the automobile manufacturing industry in Canada.” It’s worth noting that Canada’s automotive sector is closely linked to America’s, which would adversely affect GM, Ford, and Stellantis.

      Trump subsequently expressed a disconnection from reality by stating, “The only sensible option is for Canada to become our beloved Fifty-First State. Doing so would eliminate all tariffs and related issues completely.” He also asserted that Canadians would benefit from lower taxes and greater security as the “artificial border” would “finally vanish.”

      Update: It seems negotiations are currently paused, as Ford issued a statement indicating, “Secretary Lutnick agreed to meet officially with Premier Ford in Washington on Thursday, March 13, along with the United States Trade Representative to review a renewed USMCA prior to the April 2 reciprocal tariff deadline. In turn, Ontario has agreed to suspend its 25 percent surcharge on electricity exports to Michigan, New York, and Minnesota.”