US President Donald Trump has announced that an additional 25% customs duty will be added to all steel and aluminum products coming from Canada to the US. With this extra tax, the total rate will rise to 50%. In his statements, Trump said, “We subsidize Canada for over 200 billion dollars a year. Why? This can’t continue this way. The only logical thing is for Canada to be our 51st state.” Trump responded to Canada’s announcement that Ontario, Canada, would impose a 25% customs duty on electricity sold to the US via his Truth Social account. Trump strongly reacted to Canada’s decision, mentioning that they will increase the customs duty by an additional 25% on all steel and aluminum products coming from Canada to the US, raising the total rate to 50%. He also noted that Canada should immediately abolish the customs duties of 250% to 390% imposed on various US dairy products. Pointing out the difficulties posed by Ontario’s customs duty on electricity sold to the US, Trump stated, “I will declare a National Emergency on electricity in that region soon so that the necessary measures to alleviate this malicious threat from Canada will be rapidly implemented.” Trump stated, “We subsidize Canada by over 200 billion dollars a year. Why? This can’t continue this way. The only logical thing is for Canada to be our 51st state.” If Canada joins the US, Trump claimed that they will be free from all customs duties, militarily safer, and will no longer have any border issues. Trump called for Canada to eliminate its other customs duties, saying, “Otherwise, on April 2, I will significantly increase customs duties on vehicles coming to the US from Canada and permanently halt automobile production in Canada.” US-CANADA CUSTOMS DUTY TENSION The additional 25% customs duty imposed by the US on products imported from Canada and Mexico started on March 4th. Trump later announced that products covered under the “US-Mexico-Canada Agreement (USMCA)” from these countries would not face tariffs until April 2nd. President Trump had also reported that additional tariffs on steel and aluminum imports would come into effect on March 12. Ontario’s Premier Doug Ford had stated yesterday that they would apply an additional 25% charge to electricity provided to US states in response to the US administration’s customs duties. Ford highlighted that if necessary, he would not hesitate to increase this rate, stating, “If the US escalates this, I will not hesitate to completely cut off electricity. I feel very sorry for the American people because they are not the ones who started this trade war. There is only one person responsible, and that is President Trump.”
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