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Trump threatens to double tariffs, Canada withdraws 25% surcharge on electricity

Ontario Premier Doug Ford said he has withdrawn a 25% surcharge on electricity exported to the United States after talks with U.S. Commerce Secretary Howard Lutnick, in response to Donald Trump's threats to impose 50% tariffs on steel and aluminum.

Ford said in a statement with Lutnick on the social media platform X that he and Lutnick are meeting with the U.S. Trade Representative on Thursday to discuss revising the U.S.-Mexico-Canada Free Trade Act ahead of Trump's April 2 deadline for imposing retaliatory tariffs.

Earlier on Tuesday, President Trump said he was doubling the 25 percent tariff on aluminum and steel imported from Canada to 50 percent. Trump had said on social media that the tariff increase would take effect on Wednesday. He added that the tariff increase was in response to the Canadian province of Ontario imposing a tax on electricity sold to the United States.

The US President said in a post on the social media platform 'Truth Social' on Tuesday that 'I have instructed the Secretary of Commerce to increase the tariff rate on all aluminum and steel imported into the United States from 25 percent to 50 percent.'

Explaining the increase in tariffs on Canada, President Trump said that the 25 percent tariff is in relation to the smuggling of fentanyl. He criticized Canada for imposing heavy taxes on imports of milk and its products to punish American farmers.

At the same time, Trump talked about Canada becoming part of the United States to solve this problem.

He said that 'the only thing that is better for Canada is that it becomes our 51st valuable state, which will eliminate all tariffs and everything else.'

Immediately after Trump's post on social media, the US stock market fell, which increased pressure on Trump because of his plan to develop the American economy.

Larry Somers, a Harvard University economist who served as Treasury secretary in the Clinton administration, raised concerns about the possibility of a recession on Monday.

He said that the pressure on tariffs, and the uncertainty and uncertainty of the situation, have led to price increases.

He said in a post on X that we are facing inflationary fears, economic decline and more uncertainty about the future, which is slowing everything down.

President Trump has assured people that the economy will have to go through a slight adjustment process due to the tariffs, which will be because many companies will start moving their factories to the United States to avoid taxes, which could take years.

However, he did not rule out the possibility of a recession in an interview aired on Sunday. "I hate making predictions," he said in an interview on Fox News Channel's "Sunday Morning Future." "But the adjustment process takes time. Because what we're doing is a huge thing. We're bringing wealth back to America. It's a big thing. And it always takes time. I think it should be good for us."

After the stock market closed on Monday, the White House said that auto companies such as Honda, Volkswagen and Valve were considering investing in American factories as a result of the tariffs.

A statement issued by the White House said that Trump's tariff deregulation and energy sector production policies have led industry leaders to promise to create thousands of new jobs.

According to data from the US Bureau of Labor, 2.2 million jobs were created in the United States last year.