(AP Photo/Frank Augstein, File)
President Donald Trump continued to amplify anti-Canadian trade rhetoric on Tuesday, wondering why the current policy of free trade of electricity is allowed. Trump also amplified his ignorance that the free trade agreement was negotiated explicitly under the USMCA free trade agreement that went into effect during his first administration.
Trump’s on-again, off-again tariff policy with some of the U.S.’s strongest allies and largest trade partners — including Mexico and Canada — has caused significant market disruption, leading to a spate of warnings about a looming recession. During a Sunday interview with Maria Bartiromo, Trump’s refusal to say that he could not guarantee there wouldn’t be a recession did not calm already skittish investors.
In a morning Truth Social post, Trump announced a 25% tariff on Canadian electricity, as well as additional levies on steel and aluminum.
“I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING, March 12th,” wrote Trump before explaining why he considers a trade imbalance “outrageous.”
He also threatened to “substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada,” unless Canada drops what he called “egregious, long time Tariffs.”
Roughly an hour later, Trump posted another anti-Candian trade salvo on social media, asking, “Why would our Country allow another Country to supply us with electricity, even for a small area?“
It’s a good and relevant question given the growing trade war with America’s biggest ally and northern neighbor, but he should ask it of himself because it seems to be a direct result of his USMCA deal, which he’s long bragged about.
Trump wrote on Truth Social:
Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why? And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!
Astute followers of Trump’s trade history will recall this 2019 tweet in which boasted:
America’s great USMCA Trade Bill is looking good. It will be the best and most important trade deal ever made by the USA. Good for everybody – Farmers, Manufacturers, Energy, Unions – tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, NAFTA!
But USMCA-Energy one sheet explains in great detail how the free exchange of electricity is presented as a feature of the agreement, not a bug, as Trump 2.0 appears to complain about.
