Donald Trump threatens Canada with the end of his auto industry

US President Donald Trump continued to escalate with Canada in the trade conflict he spent. On April 2, he would impose tariffs on April 2, which “would make automotive production in Canada permanently to a standstill,” Trump explained on Tuesday in his online service Truth Social. At the same time, the right -wing populist announced that from Wednesday there was not only 25 percent tariffs on imports of aluminum and steel from Canada, but 50 percent.

Trump continued that “only reasonable” that Canada can do is “51st state of the United States”. He had threatened Canada shortly before taking office with “economic violence” to implement his plans from a takeover of the northern neighbor in US territory. Trump’s unprecedented threats against the sovereignty of the country caused bright outrage among the Canadians and triggered the formation of a uniform front against such US plans.

After just a few hours, Trump has withdrawn his threat. The presidential advisor Peter Navarro said on Tuesday that the import duties on aluminum and steel from Canada would be 25 percent as planned from Wednesday – and not twice.

This is the result of discussions in the meantime with the Canadian side, said Navarro. On Wednesday, the tariffs of 25 percent announced by Trump should come into force on imports of aluminum and steel. The European Union is also affected, as well as states such as Brazil, Mexico and the United Arab Emirates. Canada, one of the traditionally closest allies and most important trading partners in the United States, now has to accept a doubling compared to the original announcements in this sector.

Trump relies on tariffs to force concessions from trading partners and ultimately reach advantages for the US economy, for example by forcing manufacturers to look for domestic suppliers. In the short perspective, the tariffs also hit US companies, for example, if the taxes make production in industries such as electronics or vehicle construction more expensive. There was uncertainty at the global markets, and the courses dropped in many places.

In view of Trump’s aggressive trade policy, the Canadian province of Ontario had increased electricity deliveries to the three US states of Michigan, Minnesota and New York on Monday. Ontarios Prime Minister Doug Ford said that he was not shy about further increases and “if the USA escalate, I will not hesitate to switch off the current”.

Minnesotas Governor Tim Walz, who had started last year as a vice presidential candidate for the Democrats, said in online service X that people in his state were “the first victims of Trump’s trade war”. Minnesota cannot “afford Trump’s economy controlled by billionaires. We have to stop this madness.”

Note: This article has been updated with the statements by Trump consultant Navarro.