Trump Doubles Down on Tariffs, Trade Tensions Escalate With Canada

WASHINGTON, D.C. — President Donald Trump reaffirmed his stance against exemptions on steel and aluminum tariffs during a press briefing aboard Air Force One on March 17. The tariffs, previously announced last month at a flat 25% on all imports, will be effective as of April 2, with reciprocal tariffs expected to accompany them.

In his remarks, Trump confirmed, “In certain cases, both,” referring to the imposition of sectoral and reciprocal tariffs. He emphasized that the tariffs would target U.S. trading partners equally. “They charge us, and we charge them,” he stated. Trump also indicated that additional tariffs related to the auto industry were anticipated.

The U.S. tariffs aim to bolster domestic steel and aluminum production, but analysts warn they could lead to increased consumer prices for a wide variety of goods, from housing to automobile manufacturing. Clark Packard, a research fellow at the Cato Institute, stated, “It wouldn’t surprise me to see the tariffs pretty quickly show up in prices.” He highlighted the significant role steel plays in manufacturing and construction.

The European Commission swiftly responded to Trump’s announcement, with Australian Deputy Prime Minister Richard Marles expressing disappointment. Marles termed the tariffs “an act of kind of economic self-harm” but noted Australia would seek alternative markets for its steel and aluminum.

The lead-up to the tariff implementation was fraught with tension, particularly following Trump’s warnings of doubling tariffs on Canadian imports after threats from Canada regarding electricity prices for U.S. customers. Canadian Premier Doug Ford later agreed to suspend a proposed 25% surcharge on electricity exports to U.S. states, paving the way for further discussions about revising the U.S.-Mexico-Canada Agreement (USMCA).

Trump’s aggressive trade policy has rattled markets, contributing to fluctuations in stock prices. Shares in U.S. automakers dropped following the tariff announcement; Ford Motor fell nearly 4%, while General Motors and Stellantis saw declines as well. Price premiums for aluminum climbed to over $990 per metric ton on the U.S. physical market.

Premier Doug Ford has warned that if a recession occurs in the U.S., it may be labeled the “Trump recession.” He has indicated a willingness to halt electricity exports to the U.S. as a form of pushback against the tariffs, stating, “We will be relentless,” and emphasized the importance of maintaining good relations with American neighbors.

As tensions mount, Ford has called for American business leaders to speak out against Trump’s trade policies and their potential consequences. He noted the necessity for CEOs to take a stand, saying, “It’s mass chaos right now.”

Concerns about trade policy are reverberating across various sectors, particularly as consumer and business confidence both showed declines recently. According to Chief Executive magazine, CEO ratings of the business climate dropped significantly in January, marking the lowest level since Spring 2020.

The White House has maintained its position regarding the Canadian tariffs, with Press Secretary Karoline Leavitt asserting that they were a retaliatory measure. She emphasized, “I think Canada is a neighbor. They are a partner. They have always been an ally,” while suggesting that Canada might be positioning itself as a competitor.