Nasdaq erases gains, S&P 500, Dow extend declines as Trump boosts Canadian steel, aluminum tariffs

President Donald Trump on Tuesday said he’s boosting Canadian steel and aluminum tariffs to 50%, with the new duties set to go into effect on Wednesday.

In a post on Truth Social, the president said the increase is in response to Ontario Premier Doug Ford’s decision to impose a 25% surcharge on electricity exports to the United States.

“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 wrote.

Stocks erased earlier gains following Trump’s post, with the Nasdaq falling from session highs to trade just around the flatline.

The Dow fell nearly 1% while the S&P 500 dropped around 0.4%.

In addition to these tariffs, Trump also threatened to “substantially increase” tariffs on cars coming into the US from Canada, adding these tariffs, “will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!”