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President Donald Trump has explained that he would double the tariffs for steel and aluminum imports from Canada to 50 percent, intensify a sale in Wall Street and put the S&P 500 into a so-called correction.
The escalation of Trump’s struggle with one of the largest trading partners in the United States ignites investor fears the effects of its aggressive trade policy on the largest economy in the world.
The S&P dropped by 1.5 percent and fell to more than 10 percent less than three weeks ago.
“I have instructed my trade minister to expand an additional 25% tariff of 50% for all steel and aluminum that come from Canada to the USA, one of the highest tariff nations all over the world” wrote social about his truth Platform on Tuesday, promises to impose the tariffs on Wednesday.
After the announcement, the US aluminum and steel prices rose.
Trump said Electricity exports to the USAIncreasing electricity prices for around 1.5 million Americans in New York, Michigan and Minnesota.
In A later social media contributionTrump added: “Can you imagine Canada bent so deeply that you use electricity that affects life of innocent people as a trial and threat?”
The announcement is the latest in a series of tit-for-tat-Salvos between the USA and Canada as Trumps Tariff threats And economic nationalism threatens to break North American trade.
Shortly after his inauguration, the US President said that he would impose 25 percent tariffs in Canada and Mexico, but last week he made one-month reparation for goods that met the rules of a free trade agreement in 2020.
The aluminum and steel tariffs are part of a separate series of duties that are to be imposed on the producers around the world, which is supposed to take violence on Wednesday.
Officials of the White House say that the global 25 percent tariffs for imports of metals should protect the US domestic industry.
The Prime Minister of Ontario, Doug Ford, who has been driving publicly with Trump in the past few days, replied that the US markets were “tank” because of the US president’s trade policy. “He has to drop his tariffs and come to the table to negotiate a fair trade agreement,” Ford wrote to X. “Until he does, we will not return.”
Despite the slide in broader stock indices, the stocks of the US steel producers rose on Tuesday. The US steel rose by 4 percent, Nucor rose by 2 percent and steel dynamics rose by 1.5 percent.
A closely pursued measure of the difference between the US and London aluminum prices, as Midwest Premium, rose sharply on Tuesday and underlines the increasing costs for the American industrial groups.
Futures pursues the premium, which has increased by 18 percent of the prices of the metal, which was delivered to plants in the middle west of the United States.
Trump said that if Canada I did not drop his “long -standing” tariffs, he would “significantly increase” the taxes for cars that came to the USA, a step that he said “would” essentially close the country’s vehicle industry permanently “.
Trump, who also suggested that the northern neighbor of the United States could no longer be sure that Washington would protect it militarily, added: “The only thing that makes sense is that Canada becomes our estimated fiftieth state. This would completely disappear all tariffs and everything else. “
Canada emphatically rejected Trump’s suggestions since he became president in January.
