Tue Mar 11 15:50:00 UTC 2025: ## Trump Doubles Tariffs on Canadian Steel and Aluminum, Demands Canada Join U.S.

**Washington, D.C. –** President Trump dramatically escalated tensions with Canada on Tuesday, announcing a 50 percent tariff on Canadian steel and aluminum imports – double the levy initially planned for Wednesday. This move, he claimed, is retaliation for Ontario’s surcharge on electricity exported to the United States. The president further threatened to impose crippling tariffs on Canadian cars if Canada doesn’t remove its tariffs on U.S. dairy and agricultural products.

In a social media post, Trump went beyond economic sanctions, reiterating his controversial proposal for Canada to become the 51st U.S. state. He argued this would eliminate all tariffs and enhance both nations’ security and economic prosperity. While initially dismissed as a joke, Canadian officials are now taking these threats seriously.

The announcement sent shockwaves through the market, with the S&P 500 falling by approximately 1 percent in early trading, adding to Monday’s record-low performance for 2025. Investors are expressing concern about the unpredictability of Trump’s trade policies and their potential to trigger a recession.

**Government Shutdown Looms:** Meanwhile, the House is expected to vote on a stopgap spending bill to avoid a government shutdown Friday. President Trump supports the bill, but its passage hinges on navigating a razor-thin Republican majority, particularly in the face of unified Democratic opposition. One Republican representative has already stated they will vote against the measure, leaving little room for error. Concerns about President Trump’s and Elon Musk’s sweeping efforts to drastically cut federal spending further fueled uncertainty.

**Musk’s Cost-Cutting Continues:** Amidst market turmoil, Elon Musk, the head of the Department of Government Efficiency (DOGE), defended his cost-cutting initiatives. In an interview, he reiterated claims about widespread fraud in entitlement spending, which Democrats heavily criticize as an attack on programs vital to millions of retirees. A federal judge ruled that DOGE is subject to public disclosure laws, ordering the release of internal documents.

**International Relations Strained:** Japan failed to secure exemption from the upcoming tariffs on steel and aluminum, highlighting the broad impact of Trump’s trade policies. Separate high-level talks between U.S. and Ukrainian officials in Saudi Arabia aim to find a path to a ceasefire in the ongoing war in Ukraine, though significant differences remain about the terms of any such agreement. Secretary of State Rubio recently engaged in efforts to mend fences with Elon Musk after a tense White House meeting, suggesting a shifting dynamic within the Trump administration. The State Department is facing internal criticism and budget cuts under Rubio’s leadership.

The escalating trade war with Canada, coupled with the looming government shutdown and ongoing uncertainty surrounding the economy, are contributing to widespread market volatility and increasing concerns about a potential recession.

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