Chaotic Trump Tariff Announcements Rattle Markets & Allies

by Angie SchlagerMarch 13, 2025, 1:07 amHome Featured, News >

Last week, the Trump Administration raised global steel and aluminum import tariffs to 25%. Then, President Donald Trump pledged to double tariffs on imports from Canada to 50%, only to backtrack again on Tuesday afternoon.

The rapid-fire moves disoriented financial markets and allies alike.

In an Oval Office meeting on Tuesday, Trump disputed that his repeated flip-flops on tariffs were a sign of inconsistency but instead of his “flexibility.” “There’s no inconsistency,” Trump said. “I have the right to adjust.”

On Tuesday morning, Trump announced he would impose a 25% tariff on Canadian electricity in retaliation for Ontario’s 25% surcharge on power sent to New York, Minnesota and Michigan. The surcharge, which was revealed on Monday, could have raised utility costs by $100 per month.

Ontario agreed to suspend its 25% surcharge on electricity exports to Michigan, Minnesota and New York. However, White House spokesperson Kush Desai said that the 25% tariffs on all steel and aluminum the U.S. imports, including from Canada, were still set to take effect at midnight on Wednesday.

“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, 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,” Trump said in a Truth Social post-Tuesday.

On March 4, Trump’s 25% tariffs on imports from Canada and Mexico went into effect, though he limits the levy to 10% on Canadian energy. He also doubled the tariff on all Chinese imports to 20%. The following day, Trump granted a one-month exemption on his new tariffs impacting goods from Mexico and Canada for U.S. automakers. The pause arrived after the president spoke with Ford, General Motors and Stellantis leaders.

In the following weeks, China responded to Trump’s decision on March 4 to double the levy on Chinese imports to 20%. China retaliated against Trump’s tariffs by imposing an additional 15% tax on key American farm products, including chicken, pork, soybeans and beef.

The European Union has launched a trade response, imposing new tariffs on U.S. industrial and agricultural products. These measures will target goods from the U.S. valued at approximately 26 billion euros ($28 billion). The tariffs will affect a broad range of items, including steel and aluminum, textiles, home appliances and agricultural products. Items such as motorcycles, bourbon, peanut butter and jeans will also be subject to the tariffs, just as they were during Trump’s first term.