Escalation in Trade Tensions: Trump Doubles Tariffs on Canadian Metals

President Donald Trump has announced he will double tariffs on Canadian steel and aluminum to 50%, intensifying trade hostilities. This decision, linked to Ontario's electricity price hikes, has spurred economic concerns, with experts predicting possible recession risks. The stock market reacted negatively to the news.

President Donald Trump is heightening trade tensions with Canada by doubling tariffs on steel and aluminum imports from 25% to 50%. This aggressive move is a response to Ontario's recent electricity price increases affecting the United States.

The decision sent shockwaves through the US stock market, causing immediate declines and raising fears of an impending recession. Economists, including Larry Summers, voice concerns about the policy's potential inflationary effects and its threat to economic stability.

While Trump assures the public of economic benefits from his tax strategy, the market's reaction suggests skepticism. The administration cites prospects for new US-based investments as a potential silver lining, emphasizing job creation linked to tariff-driven factory relocations.

(With inputs from agencies.)