Washington (AP) – President Donald Trump said on Tuesday that he would double his planned tariffs in steel and aluminum from 25 percent to 50 percent for Canada, escalating a trade war with the northern neighbor of the United States.
The president is expected to make remarks on 5 afternoon EDT. Look directly at our player above.
Trump told social media that raising the tariffs set to enter into force Wednesday is a response to the increase in prices that Ontario’s provincial government put on electricity sold in the United States.
“I have instructed my trade secretary to add an additional 25%fee to 50%, in all the steel and aluminum coming to the United States from Canada, one of the highest tariff nations around the world,” Trump posted on social truth on Tuesday.
In the face of a brutal stock of the stock market on Monday and Tuesday, Trump faces increased pressure to show that it has a legitimate plan to grow the economy instead of pushing it into a recession. But so far the president is doubled in the fees he spoken constantly during the 2024 campaign and throwing an economy once sustainable in complete turmoil as investors were expecting him to run with deregistration and tax cuts instead of raising colossal taxes.
Read more: The stock market continues its slide as Trump increases ante in its trade war
The US president has given a variety of explanations for his Canada antagonism, saying that his 25 percent tariffs have to do with Fentanyl smuggling and expressing objections to Canada by imposing high taxes on milk penalties that penalize American farmers. But he continued to call for Canada to become part of the United States as a solution, a form of wandering that has angered Canadian leaders.
“The only thing that makes sense is that Canada becomes our fifty beloved state,” Trump posted on Tuesday. “It would do all the fees and everything else, it would disappear completely.”
Ontario Doug Ford, responding to Trump by raising electricity prices, told MSNBC on Tuesday that the American people and its business leaders had to speak against the “chaos” caused by the start of Trump of a trading war.
Look: Ontario Premier explains why he is hitting 25% extra in electricity for us
“If we enter a recession, it is made by one person himself. It’s called President Trump’s recession, “Ford said.” It doesn’t have to be so. We have to flourish, both places. “
Trump was decided to offer a Tuesday afternoon address at the Business Roundtable, a CEO business association that during the 2024 campaign he withdrew with the promise of low corporate tax fees for domestic producers. But his tariffs in Canada, Mexico, China, Stelelik, Aluminum – with plans to come to Europe, Brazil, South Korea, pharmaceutical drugs, copper, lumber and computer chips – would reach a massive tax growth.
The voting for the shares market disbelief over the past two weeks puts the president in a link between his enthusiasm for taxing imports and his brand as a politician who understands business based on his real estate, media and marketing experiences.
Harvard University economist Larry Summers, a former Treasury Secretary of the Clinton Administration, on Monday decided the chances of a recession at 50-50.
Read more: Trump does not exclude the recession while minimizing business concerns about his fees
“All the emphasis on tariffs and all uncertainty and uncertainty has both cool demands and has made prices rise,” Summers posted on X. “We are getting the worst of both worlds – concerns about inflation and more economic decline for the future and slows down everything.”
Investment Bank Goldman Sachs reviewed its growth forecast for this year to 1.7 percent from 2.2 percent earlier. It modestly increased its probability of recession to 20 percent “because the White House has the opportunity to attract policy changes if weakening risks begin to look more serious.”
Trump has tried to assure the public that his tariffs would cause little “transition” in the economy, with taxes that produce more companies to start the process of factories relocation in the United States to avoid tariffs. But he began alarms in an interview on Sunday in which he did not rule out a possible recession.
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“I hate to predict such things,” Trump said in “Sunday morning future on Fox News”. “There is a period of transition because what we are doing is very big. We are bringing wealth back to America. This is a great thing. And there are always periods of – it takes some time. But I do not – I think it should be great for us. I mean, I think it should be great.”
The promise of the big things ahead did not eliminate anxiety, with the S&P 500 stock index falling 2.7 percent on Monday in an incomprehensible fall of Trump that deleted market profits that welcomed its November 2024.
Trump has long been based on the stock market as an economic and political gauge to follow, only to ignore it as it remains determined so far to impose tariffs. When he won the election last year, he announced that he wanted his mandate to be considered that he had begun on November 6, 2024 on Election Day, rather than his inauguration on January 20, 2025, so that he could be credited for post -election profits.
Trump also repeatedly warned of an economic downturn if he lost elections.
“If you don’t win you will have a 1929 style depression. Enjoy it,” Trump said at a Pennsylvania’s August rally.
Trump last year claimed that his victory in Iowa’s Republican presidential groups made China’s shares market withdraw.
“China had a clash yesterday in their stock market. You know why? Because I won Iowa, ”Trump said at the time.
The White House is no longer treating shares as a reliable economic indicator. After the markets were closed on Monday, the White House stressed that tariffs were encouraging companies such as Honda, Volkswagen and Volvo to consider new investments in US factories. It issued a statement that the combination of tariffs, adjustments and increased power generation Trump had made industry leaders promise to “create thousands of new jobs”.
The importance of thousands of additional jobs was unclear, as the US economy added 2.2 million jobs last year, according to the Bureau of Labor Statistics.
Gillies reported from Toronto.