ELECTRIC SHOCK
Trump warns Canada will pay biggest price in HISTORY and triples down on 51st state threat as trade war explodes
Ontario Premier Doug Ford made a U-turn on Cnada's electricity threats hours after Trump lashed out on Truth Social
PRESIDENT Donald Trump has threatened Canada with historic financial punishment for threatening to impose 25% tariffs on electricity in three US states.
The brewing trade war between the two neighboring countries exploded on Tuesday after doubled the 25% levy on steel and aluminum in response to the Ontario government's threat of an electricity surcharge.
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In a lengthy post on Truth Social, Trump said all steel and aluminum imports coming into the US would be slapped with 50% tariffs starting on March 12.
The president said he would declare a national emergency on electricity in the affected states - , , and - to ease the burden of Canada's "abusive threat."
"Why would our Country allow another Country to supply us with electricity, even for a small area?" Trump said.
"Who made these decisions, and why? And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat?
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"They will pay a financial price for this so big that it will be read about in History Books for many years to come!"
However, hours after the post, Ontario Premier Doug Ford said he was temporarily suspending his province's planned purchase on electricity exported to the US.
Ford made a U-turn on the threats after US Commerce Secretary Howard Lutnick agreed to go back to the table on trade talks.
Ford said that Canadian delegates will travel to Washington within the next day or two to meet with Lutnick.
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"The temperature needs to come down," Ford added.
Trump confirmed the new agreement between the Ontario premier and his administration.
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"As you know, there's a very strong man in Canada who said he was going to charge a surcharge or a tariff on electricity coming into our country," the president told reporters outside the White House on Tuesday.
"He has called, and he said he's not going to do that.
"And it would've been a very bad thing if he did, and he's not going to do that, so I respect that."
TRADE WAR
Trump ignited a trade war with the US' three largest trading partners - Canada, , and - as part of a campaign promise to stop the flow of fentanyl and illegal immigrants into America.
The president's tariff war against Canada and Mexico has caused the global stock market to tumble as investors and businesses struggle to understand Trump's trade policies.
Mexico has twice managed to avoid engaging in a trade war with the United States.
President Claudia Sheinbaum of Mexico reached a deal with the Trump administration to postpone the 25% tariffs on Mexican goods for a month.
Sheinbaum told thousands of supporters in Mexico City's main plaza on Sunday that she was optimistic the tariffs would not be applied to Mexico.
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However, China and Canada have been on the wrong receiving end of Trump's punishing tariffs.
Beijing ominously warned that it is "ready for any type of war" against the United States after Trump doubled the tariffs on Chinese imports from 10% to 20%.
In February, China imposed 15% tariffs on coal and liquefied natural gas products, and a 10% levy on crude oil, agricultural machinery and large-engine cars imported from the US.
Still, Trump has maintained that on April 2, the US will begin imposing reciprocal tariffs on all its trading partners.
'TARIFF ABUSER'
Meanwhile, Trump warned that if Canada did not stop, or decided to increase its tariffs, he would move to impose levies on cars coming into the US from Canada.
"If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada," Trump warned.
"Canada is a Tariff abuser, and always has been, but the United States is not going to be subsidizing Canada any longer.
"We don't need your Cars, we don't need your Lumber, we don't need your Energy, and very soon, you will find that out. MAKE AMERICA GREAT AGAIN!!!"
Trump's threats came after Ford, Ontario's premier, responded to the president's initial tariffs by charging 25% more for the electricity his province provides to about 1.5 million Americans in Minnesota, New York, and Michigan.
[Canada] will pay a financial price for this so big that it will be read about in History Books for many years to come!
Donald Trump
Ford warned that he "will not hesitate to increase" the levies or completely shut off power to the three US northeastern states.
"Believe me when I say I do not want to do this," Ford told reporters in Toronto on Monday, before blaming Trump for his actions.
"I feel terrible for the American people who didn't start this trade war. It's one person who is responsible, it's President Trump."
'CHERISHED 51st STATE'
Trump reiterated his notion that Canada should be part of the United States, which would make the tariffs disappear.
"The only thing that makes sense is for Canada to become our cherished Fifty First State," Trump again said.
"This would make all Tariffs, and everything else, totally disappear.
"Canadians’ taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem, and the greatest and most powerful nation in the World will be bigger, better and stronger than ever — And Canada will be a big part of that.
"The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World — And your brilliant anthem, 'O Canada,' will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!"
Minutes after Trump's announcement on Truth Social, Ford said he would keep his countermeasures in place against the United States.
"We will not back down. We will be relentless," the Ontario premier told MSNBC.
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"I apologize to the American people that President Trump decided to have an unprovoked attack on our country, on families, on jobs, and it's unacceptable."
Under Ford's now pulled order, the Independent Electricity System, the power grid operator in Ontario, would have implement a $7-per-megawatt-per-hour fee on all power exports to the three states, according to .
Why has Trump hit China, Canada, and Mexico with tariffs?
DONALD Trump has imposed a 25% tariff on Chinese imports to the US and has threatened 50% tariffs on Canadian steel and aluminum. But, why did he propose the levies?
China:
- Trump believes China has not done enough to stop the production of chemicals used to make the drug fentanyl.
- China has slammed Trump for the claim and described fentanyl as America's problem.
- The country also said the tariffs are a "serious violation" of the World Trade Organization rules.
- China is therefore filing a lawsuit with the WTO against the US for "wrongful practice".
- China serves as a major supplier of auto parts to the US.
- Phones and computers along with other key electronic devices were also in the top imports from China last year, according to Commerce Department Data.
- In 2023, the US imported around $427 billion worth of products from China in total, according to the US Census Bureau.
- Data reveals that 78% of all smartphones imported from the US came from China.
- Trump's tariff threat has sparked fears of price rises for fashion items and toys.
- Beijing has responded by outlining its own tariffs on American goods, sparking fears of an all-out trade war between the two powerhouses.
Canada:
- Trump doubled his initial 25% tariff proposal on Canadian steel and aluminum after Ontario Premier Doug Ford countered by charging 25% more for the electricity his province provides to about 1.5 million Americans in Minnesota, New York, and Michigan.
- The president said the new 50% levies on Canadian steel and aluminum will take effect on the morning of March 12.
- Ford, on the other hand, instructed Ontario's Independent Electricity System to implement a $7-per-megawatt-per-hour fee on all power exports to the three US states.
- The Ontario premier warned that he "will not hesitate to increase" the levies or completely shut off power to the three US northeastern states.
- Trump ignited a trade war with Canada and Mexico during his first days in office as part of a campaign promise to stop the flow of fentanyl and illegal immigrants into the United States.
- He said both countries had not done enough to halt the drug flow and the mass influx of migrants from reaching US soil.
Mexico:
- Mexico has managed to twice postpone Trump's tariffs on Mexican goods.
- On February 1, Trump signed an executive order to impose tariffs on imports from Canada, Mexico, and China.
- But, on February 3, Trump agreed to pause the levies against Canada and Mexico after the countries took steps to appease Trump's concerns on border security and drug trafficking.
- On March 4, Trump's 25% tariffs on Canadian and Mexican imports go into effect.
- But, on March 6, the president postponed the 25% tariffs on imports from Mexico and some from Canada for a month.
- Trump credited Mexican President Claudia Sheinbaum's progress on border security and drug smuggling as a reason for the pause on the levies.
- Still, Trump has maintained that on April 2 the US will begin imposing reciprocal tariffs on all its trading partners, including Mexico.
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