U.S. President Donald Trump has increased tariffs on Canadian steel and aluminum imports to 50%. He announced this on March 11, 2025. The move came after Ontario imposed a 25% tariff on U.S. electricity exports.
As a result, financial markets reacted immediately. The Dow Jones Industrial Average dropped almost 600 points, sparking fears of a recession. At the same time, the Canadian dollar weakened. Investors became worried about the rising trade tensions.
Meanwhile, Ontario Premier Doug Ford criticized Trump’s decision. He vowed not to back down unless the U.S. removes tariffs on Canadian imports. Ford also warned that if the conflict continues, it could cause a “Trump recession” in the U.S.
Experts believe the trade war could harm both economies. They warn that prolonged conflict might lead to deeper economic damage, making recovery harder.
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