Markets tank as Trump declares a national emergency amid shocking new Canada tariffs and 51st state threat

President Donald Trump announced a national emergency on electricity and raised tariffs on Canadian aluminum and steel from 25% to 50% after Canada imposed retaliatory tariffs. He also threatened to shut down Canada’s auto sector unless the country became the 51st U.S. state.

The stock market reacted sharply, dropping over 500 points amid recession fears. Trump’s tariffs take effect Wednesday in response to Ontario Premier Doug Ford’s 25% tariff on Canadian electricity exports to U.S. states. Ford warned he may cut off electricity entirely if tensions escalate.

Trump lashed out on Truth Social, accusing Canada of using electricity as a “bargaining chip” and promising severe financial consequences. Many Northeastern states rely on Canadian energy, making the dispute highly consequential.