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USA President Trump announces new tariffs on Canada and the 51st state proposal

USA President Donald Trump announced an increase in tariffs on steel and aluminum imports from Canada to 50%. The decision was taken after the province of Ontario imposed an additional 25% tariff on electricity exported to the USA.

USA President Trump announces new tariffs on Canada and the 51st state proposal

Trump in his statement declared, “In response to Ontario's imposition of a 25% tariff on electricity imports to the United States, I have instructed my Secretary of Commerce to impose an additional 25% tariff on all steel and aluminum imports from Canada. Canada has one of the highest tariffs in the world. This decision will take effect today.”

Trump also noted that Canada has long imposed tariffs ranging from 250% to 390% on various USA dairy products, which should be lifted. He also announced that he would declare a national emergency on electricity and increase tariffs on imported cars starting April 2 if Canada does not change its trade policies.

Trump, on the other hand, reiterated his view that Canada should become the 51st state of the United States, saying, “Canada pays very little for national security and relies on the United States for military protection. We subsidize Canada more than USD 200 billion a year. This cannot continue. The only thing that makes sense is for Canada to become the 51st state of the United States. This would remove all tariffs and trade barriers.”

While Trump's statements have increased tensions in US-Canada trade relations, it remains to be seen how the Canadian side will respond to this decision.

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